DTN Closing Cotton            11/18 13:33

   Cotton Up, Oversold and China

   The cotton market was materially higher today as its oversold technical 
condition encouraged some short covering.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was materially higher today as its oversold technical 
condition encouraged some short covering. In addition, China's announcement of 
buying 14 cargoes of U.S. soybeans Monday, likely inspired some cotton traders 
to hope for better exports down the road.

   Supposedly, the Labor Department will issue a catch-up monthly jobs report 
this Thursday. Recent private-sector employment tabulations suggested a 
drop-off in hirings. The September non-farm payrolls number was 22,000.

   December cotton will enter its delivery on Nov. 21. Thus, all traders, 
except those intending to participate in the notice process, will have to 
liquidate or roll forward in time. Current open interest for the spot month is 
18,803 contracts.

   The CFTC has yet to issue any Commitment of Traders information, but as of 
this writing, may do so this Friday. The last report, Sept. 26, held a 
net-short position of 62,004 contracts.

   USDA is expected to issue weekly export sales reports. They have published a 
schedule of releases, which looks to be offering data with a one-week lag until 
January 2026.

   For Tuesday, December 2025 ended at 62.57 cents, up 21 points, while March 
2026 closed at 64.39 cents, plus 33 points. Tuesday's estimated volume was 
65,858 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




(c) Copyright 2025 DTN, LLC. All rights reserved.