DTN Closing Cotton            10/31 13:32

   Cotton Sees Technical Light

   The cotton market was higher today as some traders began to factor in next 
week's December contract option expiration, its impending delivery, and the 
overall massive net-short speculative position.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was higher today as some traders began to factor in next 
week's December contract option expiration, its impending delivery, and the 
overall massive net-short speculative position.

   Crude oil posted its third consecutive monthly decline, amid a stronger U.S. 
dollar, a weaker Chinese economy and potential supply increases. Industry 
sources say that Saudi Arabia, the world's biggest oil exporter, may reduce its 
December crude price for Asian buyers to multi-month lows due to ample supplies 
and slack demand.

   The U.S. dollar continues to trade higher, boosted by more optimism over the 
economic growth, even as the labor market weakens, and while Fed policymakers 
remain concerned about inflation. Some analysts expect the U.S. Dollar Index to 
consolidate under technical resistance at around 102, before pursuing 
additional gains next year when growth is likely to accelerate.

   One research group's cotton analysis suggests continued price volatility 
within a narrow range, as the market will be heavily influenced by 
macroeconomic factors and the ongoing supply/demand imbalance. Although prices 
are generally anticipated to stay low into 2026, a projected decline in global 
ending stocks for the 2025/2026 marketing year may lead to price increases. The 
longer-term outlook projects prices to gradually return to historical averages, 
estimated between 86 and 94 cents per pound, assuming a moderate growth in 
consumption.

   For Friday, December 2025 ended at 65.54 cents, up 47 points, while March 
2026 halted at 66.73 cents, plus 4 points. Friday's estimated volume was 76,158 
contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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