Cotton Rebounding some so far

Cotton futures are back up by as much as 66 points in the AM session. New crop Dec is another 21 points weaker at the time of writing. Cotton cooled off after the 3-day weekend with a triple digit pullback to start the week. March futures were 69 points off their lows for the close, but still down by 268 for the day. December cotton ended the session 110 points in the red and 821 points under the March. 

 

An NCC acreage intentions survey released at the 2024 National Cotton Council Annual Meeting showed only 9.8 million acres of intentions to the US in 2024. Upland cotton was estimated at 9.6 million  and 200,000 acres of ELS types.  The farmer surveys were completed in mid-January and may not reflect sentiment after the stout rally in December futures during February. Plantings in major producer Texas were seen down 5.2%. On February 14, the USDA OCE put out a much different assessment at 11 million acres. 

 

The Cotlook A Index was 101.6 cents/lb on 2/19, having faded by 75 points. USDA’s weekly Cotton Market Review showed 26,614 bales were sold during the week, averaging 88.52 cents/lb. The updated AWP was listed at 73.44, another 340 points higher for the week. ICE certified stocks remained at 999 bales for 2/15. 

 

Mar 24 Cotton  closed at 91.19, down 268 points, currently up 66 points

May 24 Cotton  closed at 91.69, down 273 points, currently up 38 points

Jul 24 Cotton  closed at 91.54, down 289 points, currently up 37 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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