By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market experienced a very two-side Friday. After an early morning rally, the cotton market rolled to negative price levels, but into its close it managed to return positive. The news of record bearish retails sales and the Trump Administration’s banning the Chinese technology giant Huawei from using U.S. software and certain semiconductor processes were two key bearish events for Friday’s trade, yet the market was able to slough them off. Still, the Huawei news deepens the ever growing divide in the U.S.-Chinese relationship.

The July market is 1.98-plus cents on the week and up 0.92 cent on the month. Of course, for all of 2020, the old crop is down 12.56 cents.

Next week’s trading will include Monday’s crop progress and Thursday’s weekly export sales. However, running in the background of all cotton fundamentals will be the proportional reopening of the U.S. economy and whatever new developments occur with China.

Friday afternoon, the CFTC will release its commitment-of-traders report. It is likely to show managed money speculators have somewhat reduced their net bearish positions, but nonetheless remain net short.

As a reminder, July cotton will enter its delivery period in 27 trading days, or June 24. Before then, all on-call or price-later cash contracts held by producers must be fixed.

July cotton closed Friday at 58.25 cents, up 0.40 cent, December ended at 58.17 cents, up 0.41 cent and March finished at 58.87 cents, up 0.25 cent. Estimated volume was 21,141 contracts.