By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market finished Friday sharply higher. The market had suffered a tumultuous week and found itself oversold with Thursday’s limit-down move. However, with little follow through selling emerging on a Friday, bargain-hunters and shorts covering somewhat ruled the day.

Next week the traders are anticipating USDA’s prospective planting numbers on Wednesday. USDA pegged the 2021 crop at 12.0 million acres at its January Ag Forum, but competition from other crops, plus this latest dive in prices, may mitigate that number. Also, next Wednesday marks the end of the quarter. To that end, there might be more than a few position adjustments made by the speculative funds.

After Thursday’s weekly export-sales cumulative sales have been recalculated and now stand at 101% of the USDA’s forecast for the current marketing year. The five-year average of 91%. Some traders were concerned that China canceled some 1,753 bales for 2020-21. However, she did buy 41,400 bales for the 2021-22 season. Of course, with the Biden administration off to a rocky start with China, traders are concerned that if U.S.-China relations worsen, the U.S. export may be in the line of fire. For the week, May cotton is down 4.30 cents for the month, 8.45 cents, but is up 1.68 cents on the year.

Friday, May cotton closed at 80.38 cents, up 1.94 cents, July settled at 81.41 cents, up 1.89 cents and December ended at 78.74 cents, up 2.19 cents; estimated volume was 47,292 contracts.