Monday’s Cotton Trade Starting Weaker
Cotton prices are 60 to 68 points weaker in early Monday action. Futures finished Friday with triple digit gains of as much as 133 points. December was still at a net 108 point loss net for the week. December futures have between between 80-90 cents since mid-July.
CFTC’s weekly data release had managed money funds 47,740 contracts net long in cotton at the Tuesday settle. That was a 6.6k contract weaker net long via liquidation. Commercial hedgers also closed short hedges through the week, weakening their net short by 6k to 93,325 contracts.
USDA reported 43,399 RBs of cotton was sold for export during the week that ended 10/5. That was a 7-wk low. Cotton exports were 104k RBs for a MYTD total of 1.61 million. That trails last year’s pace by 27%.
The week’s classings were 337,228 bales for a season total of 1.364m bales. Last year’s pace was 1.69m bales as of 10/14.
The weekly Cotton Market Review showed 4,380 bales were sold at spot this week for an average price of 81.22 cents. YTD sales were listed at 101k bales, from 31k last season. The Cotlook A Index was 95.85 cents/lb on 10/11, down by 140 points. USDA lowered the AWP for cotton by 130 points to 71.06.
Dec 23 Cotton closed at 86.06, up 114 points, currently down 66 points
Mar 24 Cotton closed at 87.77, up 111 points, currently down 64 points
May 24 Cotton closed at 88.88, up 125 points, currently down 68 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.
