Source: qualitygin.com

Keith Brown DTN Contributing Cotton Analyst
December 2, 2022

After looking very stout in early trading Thursday, cotton caved lower. Once it became apparent that the market would not hurdle its 87.35-cent resistance, traders began selling in droves. In addition, there was a first-of-the-month farmer selling as well. Another negative was Thursday's poor export-sales showing. Combined crop year sales barely totaled 27,000 bales. Friday morning, the Labor Department will issue its monthly jobs report for November. It is thought some 200,000 non-farms jobs were created last month.  

Newswire reports suggest that two Chinese cities, Guangzhou and Chongqing, will be easing their COVID restrictions. Moreover, it has been announced that other cities are beginning to ramp up their vaccinations. Crude oil was somewhat higher Thursday, supported by the potential of China relaxing its COVID protocols. In addition, OPEC meets this Sunday and could announce a reduction in production. Then on Monday, the full ban on Russian Oil by the EU takes effect.    

For Thursday, December closed at 85.93 cents, down 0.12 cent, March 2023 finished at 84.85 cents, up 0.24 cent and July 2023 settled at 83.37 cents, 0.09 cent higher; estimated volume was 30,914 contracts. (Source: qualitygin.com)