The cotton market ended lower Monday despite the fact the Dow recovered from its earlier 700-point decline. During that break, the cotton market traded in triple-digit losses, but was able to pare its losses back to double-digit levels.

Monday afternoon, USDA will report on the condition of the 2020 crop. Many areas are done with planting efforts, but recent hot-and-dry conditions across Texas, as well as several episodes of hailstorms, may have damaged acres. It is not clear whether this potential loss will make Monday’s report.

Tuesday marks the last opportunity day for producers to fix their outstanding price-later contracts, as Wednesday will be the first day of deliveries for the July contract.

As previously mentioned, managed money speculators have now reverted to a net long status. They have virtually been net short soon after the tariffs were implemented in 2018. Given the long-term trend is still bearish, it wouldn’t take much downside for them to renew their old bearish position.

The U.S. dollar has recently endured a decisive break. The threat of negative interest rates and civil unrest has caused some selling in the dollar index. Of course, a weaker dollar is a positive for agricultural commodities, including cotton.

July cotton closed at 59.01 cents, down 0.83 cent, December ended at 58.35 cents, down 0.68 cent and March closed at 59.01 cents, down 0.57 cent. Estimated volume was 35,108 contracts.