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DTN Closing Cotton 12/16 13:31
Cotton Collapses
The cotton market disappointingly fell into new life-of-contract lows today.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market disappointingly fell into new life-of-contract lows today.
A renewal of speculative selling, improving Brazilian weather and producer
fixations collectively punished prices lower.
The CFTC issued another catch-up Commitment of Traders report Monday.
However, this time, the managed-money funds were shown to be net-sellers.
Numerically, they sold 3,756 contracts, swelling their net-short position to
61,999 contracts. Such a reversal in their positioning may have inspired
today's selling. However, subsequent reports will be out every other day this
week.
The Labor Department issued its November jobs report this morning.
Expectations had called for non-farm payrolls to be 45,000, down sharply from
the 119,000 employments added in September. However, today's number was 64,000
jobs, which was higher, but still points to a poor employment situation.
The October retail sales report was also out today. Its data indicated that
sales in the U.S. had flattened in October from the September 2025 reading.
USDA issued a catch-up export sales report Monday, covering the time period
of Nov. 20. Net sales for the 2025/2026 season were 148,000 bales, with Vietnam
as the top buyer at 46,700 bales. For the 2026/2027 season, sales were 3,100
bales. Shipments were 120,800 bales. USDA will release another export sales
report this Thursday.
For Tuesday, March 2026 went out at 63.10 cents, minus 84 points; July was
65.38 cents, down 72 points; and December 2026 halted at 67.03 cents, 66 points
lower. Tuesday's estimated volume was 51,532 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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