DTN Closing Cotton            09/17 13:32

   Cotton Tries to Hurdle Resistance

   In its morning session, December cotton bumped up against key, long-term 
trendline resistance, but failed to convincingly pierce the line. 

Keith Brown
DTN Contributing Cotton Analyst

   In its morning session, December cotton bumped up against key, long-term 
trendline resistance, but failed to convincingly pierce the line. Traders will 
now assess the meaning of Wednesday's interest rate action, as well upcoming as 
export sales and the CFTC update

   The Federal Reserve announced a reduction in interest rates. The much 
anticipated quarter-point cut was made, along with the possibility of two more 
this year. The decision was 11 to 1, with the dissenting one wanting a 
half-point cut. 

   President Trump indicated he will talk to China's President Xi on Friday 
regarding trade. The success of the Madrid talks has enabled the possibility of 
a face-to-face meeting sometime in October. The possibility of new talks can 
add some strength to U.S. grains and cotton.

   USDA will issue its weekly export sales report Thursday. Last week saw net 
sales of 129,000 off 47%, and shipments of 130,000 bales, down 16%. However, 
China and India were in the business mix.

   On Friday, the CFTC will update its Commitments of Traders information. Last 
week saw managed-money funds had net sold some 2,500 positions, lifting their 
net-short carry to 68,905. Their record net-short carry stands at 79,957 
contracts. 

   For Wednesday, December 2025 ended at 67.25 cents, down 43 points, while 
March 2026 settled at 69.20 cents, off 37 points. Wednesday's estimated volume 
was 38,605 contracts.

   Keith Brown can be reached at [email protected]




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