DTN Closing Cotton            02/02 13:40

   Cotton Corralled by Outside Markets

   The cotton market was slightly lower to kick off the month of February.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was slightly lower to kick off the month of February. Most 
surrounding influences were negative. That is, the grains, metals, and energies 
were all significantly down, while the U.S. dollar forged highs.

   The U.S. government is partially shut down over DHS funding. The House has 
yet to vote. Leaders hope to resolve their differences Monday and vote to 
reopen the government by Tuesday.

   March options will expire this Friday, Feb. 6. Traders will be anticipating 
what amount of Puts and Call may expire "in-the-money".

   Export sales have shown occasional bouts of strength recently, but they have 
not been consistent enough to alter expectations that U.S. supply/demand 
balance will be burdensome. Cumulative sales have reached 67% of the USDA 
forecast for 2025/26 versus a five-year average of 82% for this point in the 
marketing year, which leaves open the possibility of a revision lower in the 
USDA forecast in upcoming supply/demand reports.

   For Monday, March 2026 went out at 62.67 cents, 50 points lower; July was 
66.10 cents, down 45 points; and December 2026 closed at 68.40 cents, minus 35 
points. Monday's estimated volume was 94,564 contracts.

   **

   Hear DTN Lead Analyst Rhett Montgomery and Ag Meteorologist John Baranick at 
the National Farm Machinery Show, Feb. 11-13, in Louisville, Kentucky. Their 
daily Weather and Markets Outlook sessions are at 10:00 a.m. EST, in Room B102, 
South Wing of the Kentucky Exposition Center. Note, this is a different room 
than previous years. You'll also learn about new digital products DTN is 
developing. Look forward to seeing you in Louisville!

   Keith Brown can be reached at commodityconsults@gmail.com




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