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DTN Closing Cotton 01/21 13:37
Cotton Market Remains Sideways to Narrow
The cotton market remains headstrong in its sideways-to-narrow trading
trend.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market remains headstrong in its sideways-to-narrow trading
trend. Its current 100-day average stands at a minus one reading, which is
defined as sideways-to-down. Naturally, in the depths of winter, there are very
few drivers to push or pull prices one way or the other.
The South America near-term weather outlook calls for Brazil to have
beneficial rains in the north, but possibly have crop stress from heat in the
drier southern production areas. Argentina is anticipating increasing crop
stress from its current dryness, but there is some rain forecast for the
southeastern areas Thursday through Saturday.
At the Davos Economic Summit today, President Trump laid the American case
for the acquisition of Greenland. He was calm, measured, and factual in his
speech. He also said that the U.S. would not employ the U.S. military to seize
the "island of ice." That last note did rally the Dow Jones and break the
precious metals.
The potential for another shutdown of the U.S. government is looming large.
Both chambers of Congress are trying to pass certain funding legislation, but
politics have entered the fray. Moreover, the U.S. Senate is out this week, and
the House is out next week.
With the observance of the Martin Luther King Day holiday, most government
reports will be delayed a day. Thus, weekly export sales will be released this
Friday at 8:30 a.m. EST.
Also on Friday, the CFTC will update its Commitment of Traders information.
Last Friday's numbers showed that the managed-money funds had net sold some
2,600 positions, increasing their net short carry to 50,392 contracts.
Traders continue to keep vigil for the U.S. Supreme Court's ruling on the
legality of Trump's tariffs. If the tariffs are invalidated, the Trump
administration says it has other "legal options" to keep them in place,
although there will likely be ensuing financial chaos.
For Wednesday, March 2026 went out at 64.30 cents, off 4 points; July was
67.40 cents, down 3 points; and December 2026 closed at 69.16 cents, plus 9
points. Wednesday's estimated volume was 40,577 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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