DTN Closing Cotton            01/26 13:33

   Cotton Materially Lower

   The cotton market suffered triple-digit losses today despite weakness in the 
U.S. dollar and recent strong export sales reports.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market suffered triple-digit losses today despite weakness in the 
U.S. dollar and recent strong export sales reports. However, the latest data 
continues to show a hefty bearish speculative position, which is feeding into 
the already demonstratively bearish technical trend.

   The U.S. government may be heading for another partial shutdown on Jan. 30. 
The death of another Minnesota protester by federal agents this weekend is 
unifying the Democrats in Congress to halt the funding of the Department of 
Homeland Security budget.

   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."

   Traders continue to keep vigil for the U.S. Supreme Court's ruling on the 
legality of Trump's tariffs, although such an announcement doesn't seem to be 
forthcoming any time soon. If the tariffs are invalidated, the Trump 
administration says it has other "legal options" to keep them in place, 
although certain financial chaos could emerge.

   For Monday, March 2026 went out at 62.97 cents, 84 points lower; July was 
66.30 cents, down 67 points; and December 2026 closed at 68.44 cents, minus 60 
points. Monday's estimated volume was 103,324 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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