DTN Closing Cotton            10/30 13:37

   Cotton Loses Export Footing

   Although not specifically mentioned in the initial U.S./China trade 
rhetoric, the cotton market was expected to be one of the key markets.

Keith Brown
DTN Contributing Cotton Analyst

   Although not specifically mentioned in the initial U.S./China trade 
rhetoric, the cotton market was expected to be one of the key markets. However, 
after Wednesday's upsurge, the ICE futures faltered, giving back a big portion 
of Wednesday's gains. Additionally, with the month's end tomorrow, some 
speculators also thought to be squaring and/or rolling their December positions.

   Today began the traditional long-only spec fund rolls. The largest long-only 
index fund is Goldman Sachs, and they have their five-session roll period 
beginning on Nov. 7.

   Recent heavy downpours in India may have damaged cotton crops after good 
monsoon rains this year encouraged expectations for a bumper crop. The question 
is how widespread the damage is. Weather watchers say the rains in Gujarat, 
Rajasthan, and some neighboring areas may have a negative impact on fiber 
quality, but no loss in production is expected.

   The promised reopening of 2,100 FSA offices has not fully materialized, and 
concerns about insufficient funding for Marketing Assistance Loans (MAL) have 
now emerged. No loans were processed today, leaving producers without any MAL 
activity for the entire month of October.

   For Thursday, December 2025 ended at 65.12 cents, minus 81 points, while 
March 2026 closed at 66.69 cents, off 82 points. Thursday's estimated volume 
was 66,916 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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