By Keith Brown, DTN Contributing Cotton Analyst
The cotton market was more about psychology Monday as it kept close eyes on the Dow Jones. After its massive 1,000-point melt last Friday, the Dow recovered about half of its loss, which inspired cotton to basically trade sideways.
Last Friday, the huge break in the various stock markets caused cotton to ignore its decent export-sales data. In those numbers, weekly sales nearly totaled 200,000 bales and China was the top buyer. Yet the dark clouds cast by the omicron variant overshadowed nearly all positive fundamentals.
Monday afternoon, the CFTC will issue its holiday-delayed commitment of traders report. Last week saw an increase in the net long position of the managed-money funds. Of course, given the data is as of every Tuesday’s settlement, Friday’s bearish spike will not be accounted into these numbers.
Also Monday afternoon, USDA will update its weekly harvest progress. Last week saw the nation’s crop 75% gathered, while there were some lags seen in the Southeastern states.
Weather-wise the six- to 10-day forecasts call for much-above temperatures for Texas, while the Delta and the Southeast will experience above-normal temperatures. Additionally, Texas will experience below-normal chances for rain, while the Delta and the Southeast look to have normal to slightly below-normal opportunities for precipitation.
Spot December cotton remains in its delivery process. There were no deliveries Monday. It expires on Dec. 8. Thus far only two contracts have been tendered.
Monday, December settled at 116.65 cents, up 0.05 cent, March ended at 111.41 cents, down 0.37 cent and December 2022 ended at 89.64 cents, down 0.13 cent; estimated volume was 22,046 contracts.