By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market sloughed off a bullish export sales report, choosing to emphasize the resumption of the 2020 harvest. Sales were 200,000-plus, with Pakistan again as top buyer. Into next week, USDA will issue its crop harvest data on Monday. Also, the CFTC will present its Commitment of Traders data. As of last report, speculators remain steadfastly net long. To that end, there was massive daily volume done this week, as funds rolled their positions from Spot December to other deferred months.

Friday, options on December futures will expire on the close. As it appears, all calls north of 68.00 cents will be exercised long into the futures. Expiration will have a definite effect on total open interest.

Chart-wise, cotton is being influenced by the obvious reversal session of Oct. 31. On that day, the market posted a new high in price, but closed lower. Moreover, December cotton has now bearishly closed outside of its well-defined trend channel. That channel pattern originated with the April COVID-19 low and was formed when all outstanding subsequent lows were connected.

Time for December cotton is running out, as its Delivery commences on Nov. 23. Thus, producers involved in the spot contract regarding cash pricing will soon have their hands forced to either fix the cotton or roll their position forward.

December cotton finished the week off 0.16 cent, for the month down 0.46 cent and for the year it is down 1.90 cents.

Friday, December cotton closed at 68.46 cents, down 0.02 cent, March settled at 70.40 cents, down 0.22 cent and December 2021 finished at 68.85 cents, down 0.32 cent. Estimated volume was 48,080 contracts.