By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market ignored the notions of seasonals, deliveries and holidays to close markedly higher Friday. Traders thought there was an element of Chinese buying in the mix. Thus, the ICE futures posted their fifth consecutive week of higher closings. Supposedly cotton prices in China are higher and that is causing textile mills there as well as the U.S. managed-money funds to increase their buying. However, some traders feel there still will be some sort of seasonal correction next week.

Friday afternoon the CFTC will issue its Commitments of Traders report. Last week the managed-money funds stood at 79,000 contracts net long.

The U.S. Dollar was higher Friday amid the House of Representatives passing the Build Back Better legislation by a mere 7 votes. Some traders believe the legislation to be wildly inflationary and thus will likely result in higher interest rates.

COVID-19 cases appear to be on the rise across the country, following a nearly three-week plateau, as Americans prepare to celebrate Thanksgiving. The CDC reported a seven-day average of nearly 95,000 new COVID infections Thursday, up 31% over the past two weeks.

Next week, the cotton market will see fresh crop harvest numbers on Monday and December cotton’s delivery period on Tuesday. Thursday will be the observance of Thanksgiving and then an abbreviated trading session Friday.

Friday, December settled at 119.22 up 1.63 cents, March ended at 116.43 plus 1.29 cents and December 2022 ended at 91.86, .07 cent lower. Friday’s estimated volume was 25,710 contracts.