By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market settled lower with most of its decline coming in the waning minutes of the session. The market was negatively influenced by weaker Chicago grains and a strengthening U.S. dollar. The stronger dollar was the result of President Biden agreeing to meet with several Republican senators concerning a smaller COVID-19 relief package. The current price tag surrounding the current Democratic proposal stands about 1.90 trillion dollars, while the Republicans are offering a $600 billion deal. The smaller the package, the less greenbacks are needed to be printed, the less pressure on the U.S. Dollar Index.

USDA will issue its weekly export-sales report this Thursday, and traders have high hopes that the market will see another bullish number. In fact, nine out of the last 10 weeks U.S. sales exceeded the 300,000 bales sold mark.

This Friday, the Labor Department will issue its first jobs report under the Biden administration. Last month, non-farm jobs fell 140,000, with a participation rate of 61.5%. The current guess calls for a gain of 50,000 jobs.

Spot March cotton’s option on futures will expire this Friday after the close. Soon after, Feb. 22, spot March will enter its notice period. That means all participants must liquidate or roll their current positions to avoid the rigors of delivery.

Monday, March cotton closed at 80.03 cents, down 0.61 cent, July settled at 82.33 cents, down 0.45 cent and December cotton ended at 77.94 cents, up 0.25 cent; estimated volume was 50,816 contracts.