Cotton Beginning October Red
Cotton is starting off the month with 24 to 36 point weakness in the active contracts. The board shows October contracts are down 187 points this morning. Cotton futures closed 0.8% to 1.8% in the red on Friday. The December contract ended 13 points off the low for the day after a 227 point trading range. Dec futures were still up 124 points for the week but lost 67 points for the month.
The weekly Commitment of Traders report had managed money with a 45,520 contract net long in cotton for 9/26. That was a 1.2k contract weaker net long primarily via net new selling. Commercial cotton hedgers added 4.7k new longs and 1.2k new shorts for a 91,911 contract net short.
USDA reported 108,555 bales were classed for the week for 859,448 on the season. That is down from last year’s 945,138 bales.
The USDA Weekly Cotton Market Review had 17,515 bales sold at spot for the week with an average price of 83.15 cents/lb. The season’s sales reached 87,927 bales, compared to 26.3k last year. The Cotlook A Index increased 10 points on 9/28 to 98.35 cents/lb. FSA reduced the AWP for cotton by 2 points for the week to 72.27 cents/lb. ICE Certified Stocks increased another 2.4k bales to 37,512 as of 9/28.
Dec 23 Cotton closed at 87.15, down 156 points, currently down 187 points
Mar 24 Cotton closed at 87.92, down 133 points, currently down 24 points
May 24 Cotton closed at 88.5, down 103 points, currently down 36 points
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
