DTN Closing Cotton            01/30 13:58

   Cotton Lower, Following Precious Metals

   The cotton market was lower today as imploding precious metals, a rising 
U.S. dollar, and end-of-the-month squaring discouraged any buying.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was lower today as imploding precious metals, a rising 
U.S. dollar, and end-of-the-month squaring discouraged any buying. For the 
month, spot Cotton ended January down some 65 points.  

   President Trump nominated Kevin Warsh to head the Federal Reserve this May. 
Warsh has previously served as a Fed Governor, and supposedly is more of a hawk 
on monetary policy. 

   Today at 3:30 p.m. EST, the CFTC will issue its weekly Commitment-of-Traders 
Report. Last week's release held that the managed-money funds had net sold some 
1500 positions, increasing their net short carry to 52,000 contracts. 
Interestingly, cotton's open interest has swelled to a record high of 360,000 
positions.

   A vote in the U.S. Senate to avert a partial government shutdown stalled 
today, making its closure a reality starting tomorrow. Congressional leaders 
were able to compromise certain funding issues for the DHS budget.   

   March Options will expire on Feb, 6, one week from today. Traders will be 
anticipating what amount of Puts and Call may expire "in-the-money". 

   The latest drought information shows the U.S. cotton planted area at 80% 
drought (varying stages). However, the recent winter storm, Fern, may have 
improved soil conditions in some areas.  

   For today, March 26 went out at 6319, 31 points lower, July was 6655, down 
46 points, and December 26 closed at 6875, minus 23 points. Today's estimated 
volume was 56,386 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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