Cotton Pushes Losses into the Weekend
Cotton futures ended the Friday session with losses of 5 to 30 points, as December was down 104 on the week. Crude oil is up $2.10 /barrel at $68.67, with the US dollar index $0.233 higher to $97.555.
The monthly update to the USDA balance sheets showed a 300,000 bale hike to US cotton exports at 11.8 million bales. That tightened the US stocks by the same amount to 4.1 million bales. For new crop, production offset that carryover drop, with a 600,000 bale increase on the larger acreage total to 8.66 million harvested acres and 14.6 million bales of production. Yield was trimmed by 11 lbs/ac. Still the increase in supply caused the projected carryout to be up 300,000 bales to 4.6 million.
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Friday afternoon's Commitment of Traders report showed a total of 3,180 contracts added to the managed money net short position in cotton futures and options. That short stood at 46,090 contracts as of Tuesday.
The Cotlook A Index was up 45 points on 7/10 at 78.60. ICE cotton stocks were down 14 bales on July 10 via decertification, with the certified stocks level at 35,333 bales. USDA’s Adjusted World Price (AWP) was back down 63 points on Thursday afternoon at 54.71 cents/lb.
Oct 25 Cotton closed at 66.2, down 5 points,
Dec 25 Cotton closed at 67.42, down 31 points,
Mar 26 Cotton closed at 68.75, down 31 points
On the date of publication, Austin Schroeder 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.
