By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market finished moderately higher as traders await Tuesday’s supply and demand report. At noon CST, USDA will issue its March Crop Report. Supposedly the data will reflect lower 2020 production, elevated exports and, thus, lower domestic carryout. In addition, world ending stocks are expected to decline.

The Dow Jones is sharply higher Monday, posting all-time highs. That market is being bullishly driven higher by the passage of the COVID relief bill of $1.90 trillion. The dollar is higher as interest rates continue to rise. There is definitely a dichotomy at work within the financial markets.

Spot March cotton expires Tuesday with the ICE close. In its lifetime it posted a contract low during April 2020 at 51.65 cents (the COVID panic), followed by a contract high of 9295 in February 2021. The contract originally came on the trading board at 7210 in April 2018. It has seen 91 deliveries since its notice period started.

New-crop cotton is already considering its planting intentions for the 2021 season. USDA will release its Prospective Plantings Report on March 31 at noon CDT. USDA’s Ag Forum held in late February slightly lowered acres for the coming 2021 season to 12 million. However, given the competition from several crops, it will be interesting to see whether cotton acres increase or decrease.

Monday, May cotton closed at 88.32 cents, up .56 cent, July settled at 89.29 cents, plus .62 cent, and December ended at 85.34 cents, .80 cent higher. Monday’s estimated volume was 27,213 contracts.