Keith Brown DTN Contributing Cotton Analyst    

The cotton market errantly traded back and forth in its trading range Monday. Spot December had the lion's share of trading volume, as its option expiry this Friday is resulting in a tremendous amount of position squaring. Prior to that event, the market will see the national midterm elections, Wednesday's WASDE from USDA and Thursday's important CPI data.  Any or all of those events can demonstratively move prices positive or negative.    

Tropical Storm Nichole, destined to become a low number hurricane, may hit east Florida Wednesday/Thursday, potentially bringing winds and rains to the Georgia and South Carolina crops. As of now, those states should be 60% to 50% gathered.    

The energy markets have traded as erratic as cotton. After showing midday strength, crude oil and its products, were all lower. Fears of demand destruction sparked by a global economic slowdown and Chinese lockdowns are at odds with the very real threat of a supply shortage.    

Monday afternoon, USDA will update the 2022 harvest progress. The last report had the 2022 cotton crop at nearly 55% harvested.    For Monday, December closed at 87.49 cents, up 0.56 cent, March 2023 finished at 85.83 cents, up 0.16 cent and July 2023 settled at 84.13 cents, 0.87 cent higher; estimated volume was 73,743 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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