Keith Brown DTN Contributing Cotton Analyst    

The cotton market was able to pare some of Thursday's steep limit-down losses Friday, although volume was light. In addition, cotton buoyed up as many outside markets were also higher. The market will be closed Monday in observance of Christmas and supposedly will reopen Tuesday morning at 7:30 a.m. EST. With that, most cotton specific reports such as export sales will be pushed out a day.    

According to a major news service, China is likely experiencing one million COVID infections and 5,000 virus deaths every day. Recently, the Chinese government demonstratively eased its strict COVID protocols, allowing the virus to run unchecked in hopes of achieving herd immunity faster. However, some out-of-country research firms suggest the daily case rate could rise to 3.7 million in January. Moreover, there will likely then be another surge of infections that will push the daily peak to 4.2 million in March.    

In its latest WASDE update, USDA lowered world cotton consumption, thereby increasing world carry. The fact the agency cut China and India one million bales, and Pakistan some 700,000, along with reductions to Bangladesh, suggests the global economy will worsen into 2023.    

Spot March cotton finished up 329 points for the week, a mere 60 ticks higher on the month, but minus 421 points on the year.    

For Friday, March 23 finished at 85.21 cents, up .91 cent, and July 23 settled at 84.91 cents, 1.40 cents higher. Friday's estimated volume was 18,106 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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