DTN Closing Cotton            12/03 13:33

   Cotton Saw Slow, Two-Sided Trade Wednesday

   The cotton market saw a slow, two-sided trade today.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market saw a slow, two-sided trade today. Outside markets were 
lower, and thus, uninspiring to the ICE futures. Yet, there was a fair amount 
of grower selling today as a certain government price support was scheduled to 
fade after today.

   Agriculture Secretary Brooke Rollins said that the Trump administration will 
announce a "bridge payment" for farmers next week. The move is designed to 
provide short-term relief, while longer trade and aid packages are finalized. 
The U.S. government is already expected to spend more than $40 billion on 
payments to farmers in 2025, the second-highest amount since 1933, according to 
USDA.

   Spot December contract remains in its delivery. There were no notices 
tendered for today. Thus far, the total notices tendered stand at 185 
contracts. Delivery runs through Dec. 7.   

   Thursday, USDA will issue its weekly export sales report for the week ending 
Oct. 30. Currently, cumulative sales for 2025/26 have reached 44% of USDA's 
forecast versus a five-year average of 60% for this point in the marketing year.

   This Friday, the Labor Department will issue its monthly job report. 
Expectations call for 125,000 non-farm jobs versus the previous number of 
177,000 jobs.

   As mentioned, the Federal Reserve will meet next week, and traders are 
anticipating an interest rate reduction. According to the CME FedWatch Tool, 
the odds for a cut have moved from an earlier 40% chance to the current 87% for 
a one-quarter cut in the Fed funds rate in the December meeting.

   For Wednesday, March 2026 went out at 64.46 cents, minus 11 points; July was 
66.60 cents, down 11 points; and December 2026, halted at 67.90 cents, 9 points 
lower. Wednesday's estimated volume was 26,902 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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