Keith Brown DTN Contributing Cotton Analyst    

The cotton market ended at the limit-down offered as far out as the July 2023 contract. Fears of higher interest rates next week, a slowing Chinese economy, and possibly stiffer competition from South America are Friday's negative drivers. In addition, comments from the CEO of FedEx indicating a worldwide recession next year heavily weighed on attitudes and thus prices. To that end, Russian President Vladimir Putin said Friday he will keep up his military efforts in Ukraine -- another negative nail.    

Monday afternoon, USDA will issue its weekly Crop Progress and condition numbers. The "bolls open" category will be keenly noticed. With hot and dry weather dominating the next two weeks, more cotton may be susceptible to loss if a major weather event hits the Southeastern United States.    

Energy prices were basically steady Friday, but still on track for a weekly decline. Traders' fear of slowing global economic growth will hurt fuel demand. With that, both the IMF and World Bank are indicating the global economy could flip into recession next year.    

Weatherwise, to reiterate both the 6- to 10- and the 8- to 14-day outlooks hold virtually no rain, and hotter-than-normal temperatures from Lubbock to Savannah.    At 3:30 EDT Friday afternoon, the CFTC will issue its Commitment of Traders report, outlining the net positions of various trading groups. Last week, the managed-money funds were net sellers, reducing their net-long position to roughly 50,000 contracts. Their speculative peak this year was about 90,000 contracts.    

For Friday, December closed at 99.29, down 400, March 23 finished at 96.15, minus 400 points, and July 23 settled at 90.84, 400 lower. Friday's estimated volume was 19,608 contracts.   

Keith Brown can be reached at commodityconsults@gmail.com 

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