Keith Brown DTN Contributing Cotton Analyst    

The cotton market was higher Friday among ongoing weather adversities. Thursday, NOAA updated its Weekly U.S. Drought Monitor to show slight improvements for the Texas Panhandle, but it went on to worsen the drought conditions of West Texas. In addition, there was heavy flooding reported in Pakistan. A weather system dumped copious amounts of rain across it northern provinces in late July, but traders are unsure of what damage, if any, occurred on any crops.    

The Labor Department released an improved jobs report Friday morning. Expectations called for 238,000 jobs, but the data was 528,000 new non-farm jobs. The better number gives the greenlight for the Federal Reserve to aggressively hike interest rates.    

Crude oil was higher Friday, after falling about 2% for much of the week. Energies were under pressure this week as traders are concerned about the impact of inflation on economic growth and demand.    

The updated six- to 10-day outlook for Texas indicates below-normal rainfall and above-normal temperature.    

Traders are gearing up for next week's supply-demand update for USDA. That report is out on Friday, Aug. 12. Of course, prior to that release will be crop ratings on Monday, and exports-sales on Thursday.    

December Cotton down 0.61 cent on the week and month, but 3.48 cents higher on the year.       

For Friday, December closed at 96.13 cents, up 1.51 cents, March 2023 finished at 93.80 cents, up 1.47 cents and July 2023 settled at 90.43 cents, 1.51 cents higher; estimated volume was 16,492 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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