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DTN Closing Cotton            09/17 13:41

   Cotton Trades Subdued Session

   Cotton spent much of its Friday trading lower, albeit on unenthusiastic 

Keith Brown
DTN Contributing Cotton Analyst

   Cotton spent much of its Friday trading lower, albeit on unenthusiastic 
volume. The market was mainly pressured by certain outside financial markets 
that tanked on fears that the Federal Reserve will initiate its tapering policy 
next week. The Fed meets on Tuesday/Wednesday, and then makes its announcement 
Wednesday afternoon. Some analysts feel invoking tapering is tantamount to 
increasing interest rates. With that notion, the U.S. dollar was higher Friday.

   Friday afternoon, the CFTC will issue its weekly commitment of traders 
report. The managed-money funds are carrying a huge net long position, but to 
date the new crop has failed to close over the 95.00-cent mark. Other traders 
feel that if those trend-following speculators are not soon vindicated by 
higher prices in the market, they may begin to liquidate. Moreover, with 
harvest just over the hill, that pressure may become all the more aggravated.

   Into next week, the market will see a crop condition update on Monday, which 
may offer some insight into the recent hurricane adversities. Then, on 
Thursday, USDA will issue its weekly export sales. Average weekly sales are 
roughly running some 300,000 bales, with China becoming a top consistent buyer. 

   For this week, December cotton finished down 1.17 cents for the week, down 
0.20 cent on the month, but 18.70 cents higher on the year.

   For Friday, December settled at 92.33 cents, down 0.18 cent, March ended at 
91.59 cents, down 0.21 cent and December 2022 ended at 82.13 cents, 0.12 cent 
lower; estimated volume was 19,625 contracts.

   Keith Brown can be reached at or by calling 
(229) 890-7780.

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