The cotton market finished sharply higher Tuesday amid USDA’s January reports. In its monthly update, the government slashed the 2020 crop another million bales, increased exports and lowered domestic carryout. In addition, global inventory stocks were paired with some 1.25 million bales to now stand at 96.32 million bales. The cotton market also saw reduced numbers for its sister markets of corn and beans. Corn traded limit-up, and beans shot nearly 55 cents higher.
The U.S. dollar seemed to resume its bearish trend, initiating another sell-off. The dollar has been suffering lower from a collection of bearish fundamentals, including domestic political concerns, overwhelming stimulus, upticks of COVID-19 infections.
The market will now likely turn its attention to the export sales report this Thursday. For the first two weeks of this year, sales have been off average, but some of that time involved end-of-year holidays. Hopefully, this week’s business will show improved sales and shipments.