By Keith Brown, DTN Contributing Cotton Analyst 

Cotton posted yet another higher life-of-contract trade, before closing mixed with old crop lower and new crop slightly higher. The market was also positively influenced by the record high trade for the Dow Jones. The stock market moved up based on the idea that a new and massive Congressional stimulus will happen once the Biden administration is inaugurated.

Additionally, the cotton market is anticipating strong export sales for Thursday. That report will be the first of 2021, and to some degree, will set the demand tone for the first quarter of the new year.

The U.S. dollar finished higher Wednesday amid its steeply oversold condition. The U.S. Dollar Index is hovering just above technical support about the 8010 area, which was the February 2018 low. Of late, the dollar has been under pressure from currency sellers who see past and future COVID-19 stimulus from Congress as highly inflationary.

Wednesday, March cotton closed at 80.06 cents, down 0.29 cent, July settled at 81.51 cents, down 0.02 cent and December cotton ended at 76.21 cents, up 0.10 cent; estimated volume was 33,329 contracts.