By Keith Brown DTN Cotton Correspondent 

Cotton finished out Christmas week slightly higher. In fact, for the week, March Cotton was up 0.96 cent. The bullish weekly action was a testament to recurring strong export-sales reports of the past few weeks, plus the fact money-managed speculators have finally turned net long. The incentive for them to reverse from their long-standing bearish course was formally triggered when the market closed above its 200-day moving average for several consecutive sessions. That indicator is a technical staple in the trading toolbox of trend-following funds and traders.

Next week, the market will continue to have a jumbled holiday schedule. Cotton will be closed on New Year’s Day, with weekly sales and exports pushed back until Friday morning as well. Although Friday’s exports-sales data was not exactly robust, some of its weakness may be attributable to the holidays themselves.

Beyond next week, the market is waiting with bated breath to see a signed deal with China. However, as of this writing, no scheduled date has been set for a formal ceremony. Thus the possibility of high anxiety and prices volatility during January is highly likely.

Friday, March cotton settled at 68.92 cents, up 0.22 cent, July finished at 70.78 cents, up 0.20 cent and December cotton ended at 70.06 cents, up 0.12 cent. Estimated volume was 21,041.