By Keith Brown, DTN Contributing Cotton Analyst 

On a day marked by tight ranges and a moderate volume, the cotton market managed to close slightly higher Wednesday. The positive close was likely inspired by recovering Chicago grains and a lower U.S. dollar. As it stands, the July market is roughly 2.00 cents from making new contract highs.

Traders are anxiously awaiting Thursday’s weekly export sales. In recent weeks, sales have exceeded, on average, 300,000 bales sold. China has been the primary buyer.

On Friday, options basis for the March contract will expire. Currently, the most prolific strikes seem to be the March 82-cent calls and the 80-cent puts.

The market is also keeping tabs on the possibility of a new COVID-19 relief plan passing in Congress. Such additional stimulus could be taken as an underlying positive by the trade. In fact, there was allegedly to be a vote Wednesday to fast-track the bill.

Thus far, March cotton is up 0.35 cent on the week, but 2.87 cents higher on the year.

Wednesday, March cotton closed at 80.99 cents, up 0.30 cent, July settled at 83.20 cents, up 0.21 cent and December cotton ended at 78.91 cents, up 0.20 cent; estimated volume was 47,919 contracts.