Keith Brown DTN Contributing Cotton Analyst    

The cotton market was moderately lower Friday amid a slow holiday trade. The market will be closed on Monday in observance of Memorial Day but will reopen Monday night.    

Spot July broke below the $1.40 mark for the first time in 21 days and, given that its delivery is pending in three weeks, it could slide even lower. For December, it continues to hang on the West Texas weather forecasts. Right now, the one- to five-day outlook shows no rain, while six- 10-day does allow better rain chances.    

The U.S. Drought Monitor continues to show West Texas in its "extreme to exceptional drought" category. In fact, despite recent southwestern rains, northern Oklahoma and the Texas Panhandle have moved from abnormal dryness and moderate to "exceptional drought" ratings.    

Friday afternoon the CFTC will issue its commitment of traders report. At last count, the highly watched managed-money funds had reduced their net long position below the 70,000-contract mark.    

As of the close Friday, spot July was down 2.85 cents for the week, down 6.21 cents thus far the month, but still up 31.54 cents on the year.    

For Friday, July cotton settled at 139.42 cents, down 1.19 cents, December closed at 122.95 cents, down 1.38 cents and March 2023 finished at 118.73 cents, 0.81 cent lower; estimated volume was 21,363 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com

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