By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market finished lower Tuesday, countering its banner day on Monday. Monday’s session saw a triple-digit higher close as traders revisited last Thursday’s stout export sales data, as well as seeing trend-following speculators padding their already net long position.

Also Monday night, U.S. and Chinese negotiators held a videoconference to review the machinations of Phase One. This meeting was originally planned for August 15th but was postponed; it did occur last night and according to both sides was considered “constructive”.

Amazingly, the December market has rallied back some 1600 points of its 2,000-point fall as measured by the December 31, 2019 settlement. In watching how certain stock markets, such as the S&P and the Nasdaq, fully recovered from their COVID-19 losses, cotton may be pondering a like-minded move itself. However, it will take less production and more demand to see such happen. A portion of that demand puzzle may show in Thursday’s weekly exports sales.

Tuesday, December cotton closed at 65.58 cents, down 24, March 66.42 cents, minus 21, red December 65.33 cents, up 29 points. Tuesday’s estimated volume was 23,791 contracts.

(Writer’s Note) It was called to our attention Tuesday morning’s commentary erroneously reported the U.S. Delta being 50% bolls open. That number was incorrect. Actually, the Delta is closer to 30% open, or thereabouts. We regret the error)