By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market was lower Thursday as the euphoria over Pfizer’s COVID-19 vaccine is waning. That realization is causing the Dow to stumble some 400 points Thursday. Additionally, another bearish aspect to the market was the fact Hurricane Eta missed the Southeast, making landfall near Tampa, Florida. Southern farmers will be able to resume their harvest efforts sooner than initially thought on Monday. More cotton picked means the more harvest pressure will emerge.

The cotton market is also in the throes of making the annual big switch, that is, the rolling of positions out of the December contract to other deferred months. Of late, daily volume totals this week have been massive. Traders remain perplexed as to how USDA could increase the size of the 2020 crop when it has suffered, and continues to suffer, with so many adverse weather events.

Friday morning USDA will issue its delayed weekly export sales. Last week’s combined sales were 171,000-plus bales, with China and Pakistan as the top two buyers. Also Friday, options will expire basis the December contract. Currently, 68 cents seems to be the key strike level option traders are watching.

December cotton closed at 68.48 cents, down 0.80 cent, March settled at 70.62 cents, down 0.76 cent and December 2021 finished at 69.17 cents, down 0.77 cent. Estimated volume was 67,561 contracts.