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DTN Closing Cotton            11/29 13:32

   Cotton Awaits Dow's Direction

   The cotton market was more about psychology Monday as it kept close eyes on 
the Dow Jones.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was more about psychology Monday as it kept close eyes on 
the Dow Jones. After its massive 1,000-point melt last Friday, the Dow 
recovered about half of its loss, which inspired cotton to basically trade 
sideways. Last Friday, the huge break in the various stock markets caused 
cotton to ignore its decent export-sales data. In those numbers, weekly sales 
nearly totaled 200,000 bales and China was the top buyer. Yet the dark clouds 
cast by the omicron variant overshadowed nearly all positive fundamentals.

   Monday afternoon, the CFTC will issue its holiday-delayed commitment of 
traders report. Last week saw an increase in the net long position of the 
managed-money funds. Of course, given the data is as of every Tuesday's 
settlement, Friday's bearish spike will not be accounted into these numbers.

   Also Monday afternoon, USDA will update its weekly harvest progress. Last 
week saw the nation's crop 75% gathered, while there were some lags seen in the 
Southeastern states.

   Weather-wise the six- to 10-day forecasts call for much-above temperatures 
for Texas, while the Delta and the Southeast will experience above-normal 
temperatures. Additionally, Texas will experience below-normal chances for 
rain, while the Delta and the Southeast look to have normal to slightly 
below-normal opportunities for precipitation.

   Spot December cotton remains in its delivery process. There were no 
deliveries Monday. It expires on Dec. 8. Thus far only two contracts have been 
tendered.

   Monday, December settled at 116.65 cents, up 0.05 cent, March ended at 
111.41 cents, down 0.37 cent and December 2022 ended at 89.64 cents, down 0.13 
cent; estimated volume was 22,046 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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