## Wednesday Cotton Rally Signals Continued Strength in Commodity Markets

Cotton futures displayed impressive momentum on Wednesday, climbing 39 to 99 points as traders absorbed the latest market data. The rally in soft commodities extended beyond cotton, with crude oil futures advancing 13 cents per barrel to settle at $58.08. Meanwhile, the US dollar index weakened by $0.064 to $99.525, a factor that typically supports commodity prices. Markets will remain closed on Thursday, limiting additional trading opportunities.

**Speculative Positioning Reaches Record Levels**

Recent Commitment of Traders data revealed significant positioning shifts in cotton markets. Spec funds continued accumulating net short positions, adding 5,017 contracts to reach a record 81,343 contracts as of October 14. This elevated short interest reflects trader expectations and could influence near-term price volatility.

**Physical Market and Auction Activity**

The November 25 online auction via The Seam demonstrated solid demand, with 6,457 bales trading at an average price of 59.97 cents per pound. ICE certified cotton stocks held firm at 20,344 bales on November 25, showing stability in available supplies. The Cotlook A Index strengthened 25 points to 74.35 cents on Monday, aligning with the broader price strength.

**Contract Performance and Price Outlook**

December 25 cotton contracts rallied significantly to 62.43, up 99 points, while March 26 contracts advanced 38 points to 64.61. May 26 contracts climbed 35 points to 65.78, showing strength across the forward curve. The Adjusted World Price was updated to 50.80 cents per pound last week, down 103 points from the prior week, and remains in effect through Thursday. These price movements suggest sustained interest in cotton positions despite headwinds affecting some market participants.