The cotton market was sharply lower Wednesday as traders concluded USDA’s supply/demand numbers from Tuesday did not justify the height of the market. In addition, similar bearish vibes rippled through the Chicago grains, knocking them sharply lower as well. Thus, Wednesday was not a positive day for U.S. row crops.

Thursday, USDA will issue its latest export-sales update. Traders are expecting to see strong sales and shipments. However, the recent surge in prices may have blunted some demand. Moreover, China will be on holiday next week as they celebrate the Lunar New Year. Last year, because of COVID-19 pandemic, the celebration was muted, if not outright canceled in many areas.

Also, Monday is a U.S. federal holiday, celebrating President’s Day. The U.S. government, U.S. postal system, Federal Reserve and many of the markets will be closed. Thus, another reason to discourage any new buyers ahead of a long three-day weekend.

Wednesday, March cotton closed at 84.67 cents, down 2.26 cents, July settled at 87.00 cents, down 1.89 cents and December cotton ended at 82.54 cents, down 1.13 cents; estimated volume was 86,741 contracts.