DTN Cotton Closing: Cotton Settles Lower
DTN Cotton Closing: Cotton Settles Lower

DTN Cotton Closing: Cotton Settles Lower

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Cotton Settles Lower, Technical Selling

By Keith Brown, DTN Contributing Cotton Analyst 

December Cotton ended Friday down 0.50 cent as some disappointed speculators liquidated positions. This week the market saw a disruptive hurricane, plus super positive sales, but could not make bullish headway. Thus, the disappointment turned into selling. Additionally, with the U.S.-China relations seemingly on the rocks, some traders were unwilling to take long positions into the weekend.

Friday afternoon, the CFTC will release its commitment of traders information, but the data will be as of last Tuesday. Although speculators have been net long since the April low, they will need further fundamental encouragement next week to stay technically long.

On Monday, USDA will update the condition of the 2020 crop, and mostly likely the impact of Hurricane Sally. Last week the crop was rated 45% good to excellent, which equaled its stance to the prior week. Also, the 2020 harvest is just now beginning to unfold, although its progress is barely scratching single digits.

For the week, December cotton was up 0.85 cent, for the month up 0.50 cent and for the year down 4.70 cents.

For Friday, December Cotton closed at 65.66 cents, down 0.19 cent, March closed at 66.58 cents, down 0.21 cent and December 2021 finished at 65.97 cents, down 0.21 cent. Estimated volume was 17,727 contracts.


Source: Agfax

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