By Keith Brown, DTN Contributing Cotton Analyst 

Cotton was sharply higher Friday as the overbrimming bullish influence of the Chicago grains finally began to register with traders. Understanding that huge swaths of Delta and Southeastern acres are leaving cotton bound for corn/beans is a huge undergirding force. Additionally, the drought now gripping West Texas seems to be intensifying according to the latest update from NOAA’s Drought Monitor map.

Friday afternoon the CFTC will update its speculative traders in its Commitment of Traders report. Traders would like to evidence that the “sold out” bullish funds are indeed returning to the long side of the market.

There are several key events traders will monitor next week. first will be Monday’s delivery situation for spot May cotton, followed by USDA’s weekly planting progress report. Given it has been unseasonably cool across the Delta and the Southeast, some growers are holding back on their planting efforts, such delays may begin to appear in that data.

On Thursday, USDA will update its export-sales data. Last week saw China as the largest buyer of U.S. cotton. It bought 36,618 bales for 2020-21 and 15,400 for 202-/22, respectively, for a total of 54,018. On the eve of its delivery, spot May cotton is up 3.55 cents on the week, 6.32 cents for the month and 8.55 cents for the year.

May cotton closed at 87.51 cents, up 2.87 cents, July settled at 88.80 cents, up 2.75 cents and December ended at 84.93 cents, 1.18 cents higher; estimated volume was 37,314 contracts.