The cotton market attempted to apply a tourniquet to its crimson fall this week. Some traders felt a 10%-plus decline off the top price was sufficient for the moment, but prices moderately fell. Overall, the market remains in harvest. That time period is typically bearish to prices.
Friday, the CFTC will update the status of traders via its commitment of traders report. The number should reflect some of the tumultuous fall the market has endured when the omicron variant was announced the day after Thanksgiving.
OPEC had its monthly meeting and elected to hike production by 400,000 barrels per day in January. OPEC officials indicated the cartel would make immediate adjustments to production policy should market conditions shift. The last comment was clearly a reference to COVID-19’s implications.
Spot December remains in its delivery period. To date there have been only two deliveries. The notice period ends on Dec. 8.
Thursday, December settled at 108.90 cents, down 0.49 cent, March ended at 103.70 cents, down 0.49 cent and December 2022 ended at 86.58 cents, 0.18 cent higher; estimated volume was 39,981 contracts.