By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market finished Tuesday moderately lower as USDA surprisingly increased the 2020 crop in its monthly supply/demand update for November. Most Traders were thinking the government would reduce the crop, given all the adverse weather that has plagued Texas, the Delta and the Southeast. However, USDA upped the production in Kansas by 400,000 bales, and that made the difference. Additionally, domestic carry remained unchanged at 7.20 million, but world carry increased from 101.13 million to 101.44 million on an increase in Chinese production.

Wednesday is a federal holiday, as the government, and all its tentacles, observe Veteran’s Day. Thus, weekly exports sales will be pushed back to Friday, in addition to December cotton’s options expiration.

The dollar and the Dow were whipped about as traders try to get a sense of the presidential election’s outcome. Right now, more emphasis is being attached to the twin Georgia senate races as to whether the balance of power in Congress shifts to all blue.

Tuesday, December cotton closed at 69.85 cents, down 0.15 cent, March settled at 71.65 cents, down 0.03 cent and December 2021 finished at 70.25 cents, up 0.32 cent. Estimated volume was a record 85,104, the most since May 2018.