By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market maintained a low profile Wednesday as it’s high-to-low range was tight and volume very subdued. Traders are keying on Thursday’s weekly export-sales report. Last week’s U.S. sales topped 450,000 with China buying some 261,000 bales. With USDA lowering its world carryout numbers, traders suspect futures sales will be strong.

Traders continue to monitor the weather of Tropical Storm Nicholas. Thus far, heavy and unwanted rains are making their way across the lower Delt, and soon will affect the Southeast. Yet another potential weather concern this year is the possibility of an early frost in Texas. An early freeze would definitely pare the size of the crop. However, if frost is delayed beyond normal freeze dates, then the Texas crop may really swell.

Friday the CFTC will issue its weekly commitment of traders report. No question this data has grown in market importance as the trend of cotton remains definitely up and the open interest is at a four-year high. Certainly, the managed-money funds need to see corroborating bullish trading action to make them stay their course, otherwise a steep correction could be at hand.

For Wednesday, December settled at 93.37 cents, down 0.77 cent, March ended at 92.62 cents, down 0.21 cent and December 2022 ended at 83.01 cents, 0.06 cent lower; estimated volume was 13,631 contracts.