DTN Closing Cotton            12/19 13:56

   Cotton Posts Third Consecutive Higher Close on Narrow Volume

   The cotton market posted its third higher consecutive close Friday, although 
volume was narrow. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market posted its third higher consecutive close Friday, although 
volume was narrow. Some analysts suggest the upward motion is more about 
short-covering by spectators ahead of the Christmas holidays, as opposed to any 
sort of demand-driven concerns.

   The CFTC will issue another catch-up Commitments of Traders report Friday at 
3:30 p.m. EST. That release will cover the period ending Dec. 9. Currently, the 
managed-money funds stand at 59,787 contracts net-short versus their record 
high count of 81,000-plus contracts.

   A quick report card on U.S. housing shows inventory fell 5.9% in November 
from October. The median price of a home sold in November, meanwhile, was 
$409,200, an increase of 1.2% from November 2024. Homes are staying on the 
market longer, at 36 days compared with 32 days last November. Cotton textiles 
are a huge component and consideration within the housing industry.

   The market will have an abbreviated trading schedule next week. It will 
close early on Christmas Eve (Wednesday), then all of Christmas Day (Thursday), 
and has a shortened session on Friday.

   For Friday, March 2026 went out at 63.75 cents plus 24 points; July was 
65.86 cents, up 20 points; and December 2026 closed at 67.30 cents, up 12 
points lower. Friday's estimated volume was 25,747 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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