By Keith Brown DTN Cotton Correspondent

The cotton market posted a 2-cent range, before closing about 0.70-cent higher on Tuesday. Estimated volume was roughly about 26,700 contracts. All day the market seesawed with no real trading conviction.

By most technical measurements, the trend of the market is bearish, but it is also steeply oversold. In fact, certain segments of the speculative community hold record net short positions. Additionally, there are some emerging fundamentals that have the potential to rally prices higher. One is the resumption of the U.S.-China trade talks, with the possibility of immediate Chinese purchases of U.S. Cotton, while the other is a growing water crisis in India, which is just now reaching the eyes and ears of the global news.

Of course, with this week being the Independence Day holiday, volume and price swings may become exaggerated. With that in mind, the cotton market will not trade this Thursday, meaning weekly sales and export will be delayed till Friday morning.

July Cotton saw zero deliveries Tuesday. Thus far, there have been 233 notices issued against the spot month contract. July futures will expire next Tuesday, July 9.

Spot July settled Tuesday at 63.77 cents, up 0.60 cent, December finished at 67.29 cents, up 0.71 cent and March 2020 closed at 68.10 cents, up 0.68 cent.