DTN Morning Cotton Commentary          12/17 07:16

   Cotton Attempts to Recover 

   The cotton market is somewhat higher Wednesday, after its disastrous break 
on Tuesday. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is somewhat higher Wednesday, after its disastrous break 
on Tuesday. In that action, March cotton posted a new life-of-contract low and 
low close. No finger can be pointed at one single cause, but a major concern is 
that global fiber demand continues to be weak.

   USDA will issue another catch-up export sales report Thursday, covering the 
week ended Nov. 27. The most recent release, last Monday, showed 2025-26 net 
sales were 148,000 bales, with Vietnam as the top buyer at 46,700 bales. For 
the 2026-27 season, sales were 3,100 bales, and shipments were 120,800 bales. 

   Overnight, crude oil has jumped more than 2% after U.S. President Donald 
Trump ordered a complete blockade of all sanctioned oil tankers entering and 
leaving Venezuela. Previously, oil prices had settled near five-year lows as 
progress was seen in Russia-Ukraine peace talks. A part of that deal would be 
to ease Western sanctions on Moscow, freeing up more oil supply.

   New inflation numbers will be out in Thursday's CPI Report. Traders will 
parse its numbers for clues as to what could be the Federal Reserve's next move 
on interest rates. Expectations call for November month-over-month to be 0.2% 
and November year-over-year to be at 3.0%

   Daily chart support for March cotton stands at 62.90 cents and 62.00 cents, 
with resistance hovering about 64.00 cents and 64.40 cents. Wednesday morning's 
estimated opening volume is 11,345 contracts.

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




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