Keith Brown DTN Contributing Cotton Analyst    

The cotton market was sharply lower to limit down Friday, as traders fear even more slowing of Chinese demand. Thursday, in the weekly export-sales report, China did not show as a buyer of U.S. cotton, but canceled close to 50,000 bales! Currently, the government is administrating another restrictive COVID-19 shutdown. Thus far some 28 cities, over 200 million people, representing one-fourth of her GDP are in "isolation limbo."    

Friday afternoon the CFTC will issue its latest commitment of traders report. Last week the managed-money funds stood at 22,000 net long contracts. Yet, given the data for today's release was taken last Tuesday, we would think this afternoon's report would be inaccurate.    

As this month nearly concludes, December cotton is off 7.02 cents for the week, down 13.23 cents on the month, and down 20.54 cents for the year.    

For Friday, December closed at 72.11 cents, down 3.00 cents, March 2023 finished at 72.07 cents, down 2.74 cents and July 2023 settled at 72.36 cents, 1.42 cents lower; estimated volume was 40,983 contracts.    

The major U.S. stock indexes are all on track to end the week higher. For those markets, it will mark the fourth consecutive higher weekly close. Currently, the Dow is up about 5%, while the S&P 500 and Nasdaq are up about 2% and 1.5%, respectively, on the week.    

Keith Brown can be reached at commodityconsults@gmail.com 

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