Cotton Bulls Have Good Week, Up 6.1%

Cotton - tijana-drndarski-ZC76ZuGB0uo-unsplash

Cotton prices retreated ahead of the holiday weekend, down 9 to 120 points in the actively traded contract months. Nearby July was still up 463 points for the week, thanks to a limit up move at midweek. Cotton limits are back to 400 points, with the July contract back above the 80 cent level.  

Export Sales data has shown 12.005 million RB of upland cotton sales for 23/24, which is 104% of the current USDA forecast, compared to the 110% average pace. Accumulated shipments are 8.767 million RB, 76% of the USDA projection and on pace with normal. Total sales for new crop are now 1.65 million RB, 2.51% above last year. 

Managed money speculators in cotton futures and options added 8,058 contracts to their net short position as of 5/21. As of the Tuesday reporting period, they were net short 23,372 contracts, the largest in nearly 14 months.

The Seam reported 13,216 bales sold on the platform on May 22 at an average price of 79.63 cents/lb. ICE certified cotton stocks were back up 1,283 bales on a mix of new certs and decerts on May 23 at 192,805 bales. The Cotlook A Index was up 300 points on May 23 at 88.60 cents/lb. The AWP for the next week was up 62 points to 60.08 cents/lb on Thursday and is good through next Thursday. 

Jul 24 Cotton  closed at 80.52, down 120 points,

Dec 24 Cotton  closed at 78.01, down 61 points,

Mar 25 Cotton  closed at 79.52, down 51 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.