Cotton Rally Resumes on Tuesday
Cotton extended the rally another day, with contracts up 26 to 99 points across the board. The old crop cotton futures were still leading the charge, as US stocks expectations are getting tighter with solid export demand. The market is trying to do it’s part in price rationing! The US dollar index was up 723 points on the day, as CPI data came in higher than expected. Crude oil futures helped things out, with gains of $0.68/barrel.
The trade is looking for USDA’s Ag Outlook Forum to show 10.7 million cotton acres projected this spring. That would be just a slight 400,000 acre increase vs. last year if realized.
The Seam reported 6,099 bales sold on Monday at an average price of 86.98 cents/lb. That was a 8.26 cent increase from the average sale price on Friday. The Cotlook A Index for 2/12 was 99.65 cents/lb, up by another 2.25 cents from the previous day. The AWP is 70.04 cents/lb. It will be updated on Thursday.
Mar 24 Cotton closed at 91.52, up 99 points,
May 24 Cotton closed at 92.06, up 76 points,
Jul 24 Cotton closed at 92.18, up 67 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.
