December cotton retreated Wednesday as disappointed speculators and some hedge selling above 7900 bent prices down. Speculators were turned off when the market, failing to force a new weekly low, could not move above the 80-cent mark. Estimated volume was 19,500 contracts. In addition, there may be some end-of-the-month and end-of-the quarter positioning by the Funds occurring during the sessions.

The Federal Reserve indeed raised interest rates on Wednesday, as expected, by one-quarter point. However, in its statement the Fed removed the word “accommodative’ from its economic lexicon. That means the days of easy money are indeed over. To that end, the Fed indicated it would raise rates one more time this year, and as many as three times in 2019.

Thursday at 8:30 eastern, USDA will issue its latest weekly sales and exports data. In recent weeks, that data has reflected dismal numbers as the U.S. remains embroiled in trade fusses with China and Turkey. Until that issue is resolved, its effect will hang like a dark cloud over the cotton industry. Additionally, the 2018 Harvest will begin in earnest next week across the South. However, episodes of rain might slow some areas.

December cotton settled at 7855, down 44, March at 7899, down 45, and December 19 finished at 7629, down 37 points.