DTN Morning Cotton Commentary          11/21 07:13

   Cotton Off Amid Deliveries, Dollar 

   The cotton market is lower Friday as there were deliveries posted against 
spot December, as well as an upside resurgence in the U.S. dollar. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is suffering lower Friday as there were deliveries posted 
against spot December, as well as an upside resurgence in the U.S. dollar.

   The ICE Exchange reported 59 notices were issued against the spot December 
contract. Term Commodities was the issuer with a host of sporadic stoppers on 
the receiving end. Those stoppers included Marex, StoneX, RJ O'Brien, and 
Dorman. Delivery continues to Dec. 7.

   Essentially, the cotton market continues to be burdened by a plethora of 
negative fundamentals. Those include ample supply, weak demand, a stronger U.S. 
dollar, a crisis-stricken U.S. farm economy, and trade and policy uncertainties.

   The Commitments of Traders Report released Wednesday, the first one since 
the government shutdown ended, showed managed money traders were net sellers of 
2,737 contracts for the week ended Sept. 30, That increased their net short to 
64,740, edging ever closer to their record bearish position of 79,957 contracts 
from March. Supposedly, the CFTC will issue another report Friday at 3:30 p.m. 
EST. The agency will release updates roughly twice per week until they are 
up-to-date in mid-January.

   Crude oil is lower as the U.S. is pushing hard for a Russia-Ukraine peace 
deal. The deal appears to be more favorable to Moscow as it requires the 
Ukrainians to surrender large tracts of territory, reduce its military by 
one-half, and never seek NATO membership.

   Daily chart support for March cotton stands at 63.00 cents and 62.50 cents, 
with resistance at 64.30 cents and 65.00 cents. Friday morning's estimated 
volume is 10,877 contracts.

   Keith Brown can be reached at commodityconsults@gmail.comor by calling (229) 
890-7780.




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