By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market finished its Friday session slightly lower, despite the super-charged inflation report from the Labor Department. The CPI, or Consumer Price index, indicated the inflation rate for the U.S. economy touched a 39-year high.

Moreover, when traders added to that event the better weekly export-sales data and the positive supply-demand update, it is understandable they were looking for better prices Friday. However, those fundamentals probably have longer-term applications.

Friday afternoon the CFTC will update its traders positions. Judging by the recent decline in open interest, current thinking suggests the managed money funds may have additional net long positions.

Weather-wise, the six- to 10- forecast from the Climate Prediction Centers indicates above-normal temperatures for the Delta and South East, while rain chances for the same areas look scant. To that end, some traders are beginning to sense a La Nina event will take place this winter and spring from Texas to Georgia.

Into next week, the market will see the all-important Fed meeting, plus weekly export sales from USDA. The FOMC meeting will address whether to speed up “tapering” given the rise in inflation.

Friday, March cotton settled at 106.23 cents, down 0.36 cent, July ended at 102.80 cents, down 0.30 cent and December ended at 89.75 cents, 0.09 cent higher; estimated volume was 17,906 contracts.