Cotton Posts Turnround Tuesday Bounce
The cotton market saw higher action on Tuesday, as they try to recover from the recent collapse in prices. Contracts closed with 30 to 49 point gains across most contracts, despite negative outside factors and faster than normal planting pace. The US dollar index was up 341 points, a negative input, while crude oil was 22 cents lower.
The US cotton crop was reported at 24% planted as of Sunday, a 9% advance over the last week. The 5 year average planting pace for the crop is 20% complete by May 5, according to USDA/NASS. Of the major cotton acreage states, TX was 3% faster than normal at 24%, with GA 4% ahead at 21%.
ICE certified cotton stocks were down 1,320 on May 6 at 184,790 bales. The Cotlook A Index was down 30 points on May 3 at 83.25 cents/lb. The AWP dropped another 78 points to 60.55.
May 24 Cotton closed at 77, up 44 points,
Jul 24 Cotton closed at 77.5, up 44 points,
Dec 24 Cotton closed at 75.75, up 44 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.
