By Keith Brown, DTN Contributing Cotton Analyst 

The market finished strongly higher Monday as traders continued to be impressed with USDA exports and supply-demand data of last week. Within that data, sales were in excess of 400,000 bales, while the 2020 production was slashed by a million bales. In addition, traders saw the weekend rollout of the COVID-19 as a positive sign for future cotton demand.

Monday, the December U.S. Dollar Index contract expired, closing out at near two-year lows. A weaker dollar typically results in stronger agricultural exports. The Federal Reserve meets Monday and Tuesday to determine future monetary policy. Currently, interest rates are not expected to be hiked.

Although we estimate the 2020 harvest seems to be over 95% gathered, the balance of the weather for the Southeast and the mid-Atlantic states looks to be uncooperative. Wet and cold weather conditions will be the reward for those producers who had to delay their gathering activities.

For Monday, March cotton closed at 74.67 cents, up 0.59 cent, July settled at 76.20 cents, up 0.66 cent and December cotton ended at 72.90 cents, 0.53 cent higher. Estimated volume was 23,364 contracts.