DTN Closing Cotton            12/01 13:33

   Cotton Suffers Muted Monday 

   The cotton market was slightly lower Monday.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was slightly lower Monday. It was a lethargic session, 
with less-than-a 60-point high/low range and moderate volume. Most outside 
financial and commodities were also lower. Bearish Chinese economic numbers 
were likely the fundamental root cause for the poor showing.

   The CFTC will publish updated Commitments of Traders data Tuesday afternoon 
at 3:30 p.m. EST. Its previous catch-up release of last Wednesday showed the 
managed-money funds posted a new record net-short position in excess of 
80,000-plus contracts.

   The spot December contract is in its delivery period and there were two 
notices issued for Monday. Thus far, the total notices tendered stand at 173 
contracts. Delivery runs through Dec. 7.

   From World-Weather, fieldwork in the U.S. Southeast may be disrupted 
periodically by rain. There is also some potential for partial relief from 
drought for those same locales. Australia's cotton crop would benefit from rain 
in western, dryland, production areas where recent hot and dry conditions may 
have slowed some development. Eastern crop areas are suspected of being in 
mostly good shape.

   As mentioned, China's factory activity improved but remained in contraction 
in November, extending its streak of declines to a record as the country's 
economic slowdown deepens, fresh data on Sunday showed. The official 
manufacturing purchasing managers' index was 49.2, remaining below the 50.0 
mark that separates growth and contraction, for an eighth month.

   Monday morning, USDA released fresh export sales data for the week ended 
Oct. 23. The report showed net sales of 132,760 bales for 2025-26, and 34,982 
for 2026-27. The total was 167,742 bales. Cumulative sales for this season have 
reached 4.889 million bales, down from 5.47 million at this time last year and 
below the 5-year average of 7.42 million. It's the lowest since 2015-16. 
Shipments totaled 174,448 bales, up from 159,631 the previous week and the 
highest of the marketing year so far.

   For Monday, March 2026 went out at 64.63 cents, minus 8 points; July was 
66.81 cents, down 15 points; and December 2026, halted at 68.03 cents, 9 points 
lower. Monday's estimated volume was 33,524 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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