December cotton futures settled at 81.96 cents per pound on uncertainty as to how the market will react to the expected implementation of tariffs on Friday.

Additional volume moved into the complex as traders returned Thursday following the holiday break. Pressure in December is focused on uniform losses in all nearby contracts with December futures settling at 81.96 per pound, following a 0.85-cent-per-pound loss. March contracts are holding a narrow discount to the December contract with prices slipping 0.63 cent per pound, settling at 81.85 cents per pound.

Weakness has developed over the last month as contracts were unable to move through resistance levels of 93 cents per pound through mid-June. Prices have now fallen more than 10 cents per pound from yearlong highs, as traders continue to assess potential concerns surrounding upcoming demand as well as weather concerns in several parts of the country.

Even though prices have shown significant weakness, prices are still well above year-ago levels by nearly 15 cents per pound. The expectation is that seasonal pressure may continue to be seen over the next several weeks. This is adding to the concerns surrounding global demand and exports.

Overall stocks moved to delivery points early in the week posted 91,766 bales delivered on July 2, while 92,135 bales were delivered July 3. The majority of deliveries each day were seen in the Memphis market, with a total of 55,000 to 56,000 bales in the Memphis market each day.

Cash cotton sales on the Seam Daily cotton price report as of July 3 posted a total of 558 bales sold, with the total sold through the season that started July 1 at 808 bales. Average prices were seen at 0.7332 cent per pound, with an average loan price of 0.5166 cent per pound.

This amounts to an average premium over loan price at 0.2166 cent per pound. Even though fewer than 600 bales were sold on the market, a total of 24,157 bales were offered for sale.