By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market continued to punch out new highs amid the harsh weather that is gripping much of the country. In Texas, millions are without electricity, causing a logistical nightmare as far as shipping cotton. In Galveston a part of the port is closed. Once the weather abates, we could see cotton retreat lower to some degree, along with the energy markets.

This week’s export sales have been delayed until Friday due to the observance of Presidents Day. China will remain on her spring Festival celebration until Wednesday.

Traders continue to anticipate more COVID-19 relief spending from the Congress now that the Trump impeachment trial is over. This most recent bill is requesting 1.9 trillion dollars. This is in addition to the 900 billion passed in December 2020 and the 1.8 trillion done last July. Much of that money has yet to be properly allocated. Thus, the nation is looking at spending funds on top of funds, which could result in serious future inflation.

March cotton enters its delivery period this coming Monday. Carrying an open interest of 17,000-plus contracts, there remains some serious pairing of positions by traders by Friday’s close to avoid the delivery process.

Tuesday, March cotton closed at 88.12 cents, up 0.85 cent, July settled at 90.32 cents, up 0.91 cent and December cotton ended at 84.81 cents, up 0.92 cent; estimated volume was 47,889 contracts.