By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market ended Thursday higher, with virtually all trading months posting new life-of-contract highs. The market has been on an accelerated upside tear based on strong demand, reduced COVID-19 infections for the U.S. and a very bullish technical chart. Managed money speculators remain decidedly net long in the market.

USDA will issue its weekly export sales Friday. They were delayed due to Presidents Day holiday this past Monday. To that end, U.S. sales are strong. Cotton sales have reached 91% of the USDA’s forecast for the 2020-21 marketing year versus a five-year average of 78%.

This Monday March Cotton will enter its delivery. Only those wanting or needing to take actual delivery should be in the contract at that point. Thursday morning the open interest for March was 9,990 contracts. To avoid delivery, those holding spot contracts must be zeroed out by the close Friday.

Also, Friday, the CFTC will issue its spec-commercial trading data, better known as the commitment-of-traders report. The CFTC will detail what group holds what position and to what side (long or short).

Heading into Friday’s session, March cotton is up 1.46 cents for the week, plus 8.09 cents for the month and up 10.61 cents points for the year.

Thursday, March cotton closed at 88.73 cents, up 0.37 cent, July settled at 91.04 cents, up 0.33 cent and December cotton ended at 85.08 cents, up 0.08 cent; estimated volume was 40,298 contracts.