Cotton Rollercoaster: Gains Fade, Shorts Ease, Stocks Steady
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This is your Daily Cotton Price Tracker with Vanessa Clark podcast.
Hey everyone, welcome back to Daily Cotton Price Tracker. I'm Vanessa Clark, and I'm so glad you're here with me today. We've got some really interesting price movements to talk about, so let's jump right in.
Cotton has been quite the rollercoaster this Wednesday, and honestly, it's a perfect example of why we need to stay on top of these markets. Here's what's happening right now. We started the morning with some positive momentum. Cotton prices were up between 10 to 17 points across most nearby contracts early this morning, which got traders pretty excited. But here's the thing about commodity markets, they can shift on a dime. As the day progressed, we saw those gains fade, and now we're looking at prices down 6 to 10 points in the nearby contracts. So that early enthusiasm didn't quite stick around.
Let me give you the specific numbers so you know exactly where we stand. December 2025 cotton closed at 62 point 77 cents per pound, which is down 6 points from the previous close. March 2026 cotton is sitting at 64 point 47 cents per pound, down 10 points. And May 2026 is at 65 point 71 cents per pound. These are the key prices you want to be tracking if you're following this market closely.
Now, what's driving these movements? We're seeing some interesting dynamics. First, there's the managed money traders. According to the latest Commitment of Traders data, they trimmed 98 contracts from their previous record net short position back on October 21st, bringing that down to 81,245 contracts. That's actually a positive signal that some of the extreme positioning is easing up.
Looking at inventory, ICE certified cotton stocks held steady at 19,894 bales as of December 2nd. That's actually pretty significant because inventory levels can really influence longer term price trends. And here's something else worth noting, the Adjusted World Price came in at 50 point 77 cents per pound last week, down just 3 points from the week before.
If you're buying or selling cotton in the physical market, The Seam online auction on December 2nd showed 15,688 bales sold at an average price of 61 point 31 cents per pound. That's a pretty good volume day and gives us a real world sense of what's actually trading hands out there.
The broader commodity context matters too. We're seeing crude oil up 73 cents per barrel today at 59 point 37 dollars, and the US dollar index is down to 98 point 860. Those movements can absolutely influence how cotton trades because they affect the global competitiveness of US cotton exports.
Here's my takeaway for you, folks. We're in a period where prices are being pressured, but we're not seeing any dramatic sell offs. The fact that managed money is reducing their short positions suggests there might be some stabilization ahead. If you're involved in cotton, whether you're a farmer, a trader, or a business using cotton, this is a good time to stay alert and watch those key price levels.
Thanks so much for tuning in to Daily Cotton Price Tracker. I really appreciate you spending this time with me. Don't forget to subscribe and come back tomorrow for another update on what's moving in the cotton market. We'll be here every day bringing you the latest prices and insights. Take care, and I'll talk to you next time.
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