By Keith Brown, DTN Cotton Correspondent 

The cotton market opened lower, traded lower and closed lower Monday. Given China’s lack of transparency at the start of the coronavirus outbreak, the integrity of its numbers and reports are being challenged by much of the world. Earlier Monday, the Dow Jones collapsed some 2,000 points and really never staged much of a recovery rally. Some of the biggest sellers in the equity markets were computer programs. Also, a weakening force of the markets was the Russia/Saudi energy fuss.

Last Friday, the CFTC’s Commitments-of-Traders report revealed that managed money speculators net reduced their net long position by 17,789 contracts. It is thought that they now stand long only 4,612 contracts, and after Monday’s action, we are not sure about that status. Additionally, the data even showed the always long-only Index Funds were net sellers of 54,000 or so contracts.

March cotton expired Monday at 61.39 cents, down 1.58 cents, and to that we say “good riddance.”

Tuesday at 11 a.m. CDT, USDA will issue its crop report for March. Expectations suggest lower 2019 production, increased domestic exports, but the possibility of another bearish consumption adjustment to China.

May cotton closed at 61.21 cents, down 1.58 cents, July finished at 61.91 cents, down 1.60 cents and December ended at 62.11 cents, down 1.70 cents. Estimated volume was 52,128 contracts.