Keith Brown DTN Contributing Cotton Analyst    

The cotton market continues its sideways trading path today, as it was down early in the session, but ended higher. fundamentally, there is a standoff of sorts between would-be sellers (producers) and would-be buyers (mills) in that with the slowing of the global economy the zeal to buy cotton has become muted.     

This afternoon at 3:30 pm, the CFTC will issue its weekly traders update. Last week, the closely watched managed-money funders were shown to be net long 18,000 contracts positions.    

As the market prepares to trade a new calendar year, it is worth noting that the current financial environment is one of higher interest rates and slowing growth. The Federal Reserve has clearly expressed its intention of bringing the pace of inflation back to the 2% level, even if that means putting the economy into a deliberate recession. Short of a weather scare next spring, it is hard to see how the demand fundamentals will be dynamic enough to rally the price of cotton.     

Spot March Cotton ended up 97 points for the week, but off 269 points on the month, and down 750 on the year.     

For today, March 23 finished at 81.92, up 89, and July 23 settled at 82.03, 78 higher. Today's estimated volume was 21,452 contracts.

Keith Brown can be reached at commodityconsults@gmail.com 

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