By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market ended its Monday session sharply higher amid trader expectations for Thursday’s USDA data. Initially, USDA will issue its weekly export sales. Of late, sales and shipments have been running strong, with current seasonal sales running at 70% plus of USDA’s crop year target. In a statement, USDA indicated it expects U.S. cotton exports to China to increase for the 2020-21 season, driven mainly by China’s recovering textile industry.

On Thursday, USDA will update its supply-demand outlook for the U.S. and the world. Last month, the government pegged U.S. carryout at 7.20 million bales and the world at 101,50 million. Traders are expecting to see significant production cuts to the domestic and global crop, thereby reducing ending stocks for both categories.

The U.S. dollar rose Monday as hopes that a vaccine for COVID-19 was “right around the corner.” Several major pharmaceutical research companies have said they have developed vaccines with a 90%-plus efficacy rate. Interestingly, the UK (England) will begin to distribute its vaccine this week.

December cotton expires Tuesday at the close. There were 10 notices issued for the spot contract Monday morning. The seasonal total for all deliveries stand at 408 contracts.

For Monday, March cotton closed at 72.38 cents, up 0.81 cent, July settled at 74.02 cents, up 0.81 cent and December 2021 ended at 71.47 cents, up 0.77 cent. Estimated volume was 25,540 contracts.