Despite a sharp sell-off seen in the U.S. dollar index, a move that provided support to most commodities, cotton contracts finished the day lower.

New-crop December cotton gave back 0.09 to close at 68.80 while March slipped 0.21 to 68.23. December corn finished 1/4 cent higher while November soybeans rallied 5 1/2 cents and September Chicago wheat gained 1 1/4 cents for the day.

The U.S. dollar index was 0.58 lower at 93.33 and August gold was $8.10 higher at $1,268.10. September silver gained $0.112 and September copper rallied $0.0010. The Dow Jones Industrial Average was 7 points higher at 21,804. September crude oil was $0.68 higher at $49.72 with the August distillates (heating oil) contract up $.0370 while August RBOB gasoline rallied $.0329 and September natural gas was $0.026 lower.

Comments:

Despite continued commercial buying seen in new-crop cotton, indicated by the strengthening inverse of the December-to-March futures spread, the market closed lower Friday on noncommercial selling. Still, the December contract remains in an uptrend on its weekly charts, pointing toward increased buying interest in the weeks to come.

Traders treated Friday cautiously ahead of another weekend expected to be highlighted by weather across key growing regions. Selling action by noncommercial traders was made more interesting by the sharp sell-off seen in the U.S. dollar, a move that provided support to most other commodities.