DTN Closing Cotton            01/23 13:36

   Cotton Closes Mixed

   The cotton market sloughed off strong exports sales, a weak U.S. dollar, and 
growing weather concerns to settle mixed today. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market sloughed off strong exports sales, a weak U.S. dollar, and 
growing weather concerns to settle mixed today. Apparently, the bearish trend 
was too intense to overcome. For the week, the market was off about 68 points.

   Highlights from today's weekly export sales include marketing-year-high 
combined sales of 438,392 bales. Today's sales eclipsed last week's, also a 
marketing-year-high number of 349,844 bales. Currently, net sales have reached 
66% of the USDA's forecast versus a five-year average of 80% for this point in 
the marketing year.

   The Climate Prediction Center now assesses that 83% of the U.S. Cotton 
planted area is in some form of serious drought conditions. That number is up 
from last week's 82% drought.

   Also, this afternoon, the CFTC will update its Commitment of Traders 
information. Last Friday's numbers showed that the managed-money funds had net 
sold some 2,600 positions, increasing their net short carry to 50,372 contracts.

   March options will expire on Feb. 6, or in about two weeks. Traders will be 
anticipating what amount of Puts and Call may expire "in-the-money."

   The House of Representatives passed the final set of outstanding government 
funding bills ahead of another government shutdown on Jan. 30. The four bills 
fund the departments of Defense; Health and Human Services; Homeland Security; 
Labor; Housing and Urban Development; Transportation; and Education. These 
bills represent the final quarter of 12 annual appropriations bills required to 
fund the government to avoid a partial shutdown. The Senate still needs to 
approve them, before they head to the President for signing.

   For Friday, March 2026 went out at 63.81 cents, 7 points lower; July was 
66.97 cents, unchanged; and December 2026 closed at 69.01 cents, plus 4 points. 
Friday's estimated volume was 63,366 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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