By Keith Brown, DTN Contributing Cotton Analyst
The cotton market experienced follow-through buying Tuesday as traders are still operating off the bullish USDA data of last week, as well as the COVID-19 vaccine victory. Spot March cotton posted another set of new highs in price as well as a settlement. Such action can only affirm in the minds of traders and speculators, that long is the way to be positioned. Currently, cotton’s bull market turned eight months old in December.
The U.S. Dollar Index posted new lows for its moves as it remains in a steep downtrend. The dollar, among other markets, is also awaiting the Federal Reserve’s decision on future monetary policy. That announcement comes tomorrow. Interest rates are expected to be left unchanged. A general consensus among traders reflects their beliefs as domestic and world cotton stocks tightens, that the market may continue to find support next year.
For Tuesday, March cotton closed at 75.59 cents, up 0.92 cent, July settled at 77.00 cents, up 0.80 cent and December cotton ended at 73.27 cents, up 0.37 cent. Estimated volume was 24,210 contracts.