By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market saw several of its contract months end at limit down Tuesday, amid growing fears over the omicron variant, plus disturbing comments from the Federal Reserve. Chairman Jerome Powell suggested that inflation was no longer considered transitory and that the Fed’s tapering process needs to be implemented quicker.

Powell said, “At this point, the economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, perhaps a few months sooner.”

March cotton fell to its lowest price level since Oct. 27. Additionally, new-crop December cotton (2022) closed below the 87.00-cent mark. Volume Tuesday was 50,000-plus contracts.

Wednesday, Dec. 1, will commence the last month of the fourth quarter. With that the Labor Department will issue new jobs data on Friday.

December cotton is in delivery and will remain so until its expiration on Dec. 8. To date only two notices have been issued. Certificated stocks stand at a mere 400 bales.

OPEC will supposedly meet on Thursday to assess what response, if any, it should take towards the several nations that released SPR Oil. There have been rumblings OPEC may hold oil production steady, if not reduce its output altogether.

Tuesday, December settled at 111.65 cents, down 5.00 cents, March ended at 106.41 cents, down 5.00 cents and December 2022 ended at 86.71 cents, down 2.93 cents; estimated volume was 51,447 contracts.