By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market was sharply higher Monday as hot and dry conditions are gripping much of the Cotton Belt. Speculators were the main buyers, which only padded their existing net long position.

Texas has already been enduring triple-digits temperatures, with scant rain. That combination has greatly reduced that crop. Last week, the crop rating for Texas was 41% very poor to poor, but Monday those detrimental ratings are expected to worsen. Moreover, currently the southeastern crop is beginning to show big-time stress. It has not rained in South Georgia in 14 days and temperatures have exceeded 90-plus degrees every day. Last week, the Georgia crop had built up to a 75% good-to-excellent rating, but no doubt, those ratings will fall.

The market is also anxious about this week’s export sales. Last Thursday saw net negative sales for the old crop, which is understandable. Yet, China only bought 38,000 bales for the new crop. The implication is, as the U.S.-China relationship melts in anger, China may halt buying, or worse, cancel a slug of purchases of U.S. cotton.

For Monday, December cotton closed at 62.88 cents, up 0.94 cent, March settled at 63.61 cents, up 0.98 cent and December 2021 ended at 62.96 cents, 0.52 cent higher. Estimated volume was 15,200 contracts.