By Keith Brown DTN Cotton Correspondent 

The cotton market was materially higher Monday as the weekend hopes of a U.S.-China trade deal supported prices. Additionally, the market entered this Thanksgiving Week in an oversold state, having sharply dropped some 3 cents last week.

A third last supportive reason for higher Monday prices was the CFTC trading data. That weekly report showed bearish speculators decreased their net short position last week. Roughly, managed money speculators are now net short some 13,500 contracts, down 1,500 contracts from the previous week.

Thus far, December cotton’s notice period is unfolding benign in that the hundreds of contracts a certain commercial is tendering are being fully stopped by another major commercial. December cotton expires on December 7.

The financial markets continue to “trek north”. That is, the Dow Jones stands at all-time records highs, which is tugging the U.S. dollar higher as well. Those markets have the effect of a two-edged sword on agricultural commodities. In one sense, a strong Dow helps support the prices of raw material, which certain industries need to exist, while a strong U.S. collar can be something of a hindrance towards the exportation of U.S. commodities.

Monday afternoon, USDA will report on the pace of the U.S. harvest. It is expected to show the 2019 crop is in excess of 75% gathered.

For Monday, December cotton settled at 64.69 cents, up 1.27 cents, March finished at 65.80 cents, up 0.95 cent and December 2020 ended at 67.58 cents, up 0.54 cent. Monday’s estimated volume was slow 23,300 contracts.