DTN Morning Cotton Commentary          10/31 07:49

   Cotton Lower at Month's End 

   The cotton market, uninspired by Thursday's U.S./China trade understanding, 
returned to focus on its immediate fundamentals Friday morning. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market, uninspired by Thursday's U.S./China trade understanding, 
returned to focus on its immediate fundamentals Friday morning. Those aspects 
include the ongoing 2025 harvest, a strong U.S. dollar, a bearish technical 
trend, and the December contract's approaching option expirations and delivery 
events. 

   Farm Service Agency (FSA) operations remained largely paralyzed. The 
promised reopening of 2,100 FSA offices has not fully materialized and concerns 
about insufficient funding for Marketing Assistance Loans (MAL) have now 
emerged. No loans were processed Friday, leaving producers without any MAL 
activity for the entire month of October.

   The U.S. government shutdown stands at day 30. This weekend, being the first 
of the month, could see disruption in various social support programs such as 
SNAP with its 45 million recipients. Thus, pressure is mounting on the 
Democrats to make the vote. Today, President Trump is asking the Senate to end 
its filibuster rule, so that a simple majority in that chamber can pass 
legislation.

   The 6- to 10-day weather outlook (Nov. 5-9) calls for above-normal 
temperatures for Texas and somewhat normal temperatures for the Delta and the 
Southeast. Rain-wise, Texas looks to have much below-normal chances, while the 
Delta and the Southeast will see normal opportunities.

   Daily chart support for December cotton stands at 64.25 cents and 63.75 
cents, with resistance at 66.10 cents and 66.50 cents. Friday morning's 
estimated volume is 10,181 contracts.

   Keith Brown can be reached at commodityconsults@gmail.comor by calling (229) 
890-7780.




(c) Copyright 2025 DTN, LLC. All rights reserved.