Cotton Post Gains, USDA Ratings Suggest Good Start to Growing Season

Cotton - amber-martin-9pvTSsNV2T4-unsplash

Cotton futures came out of the Monday holiday with contracts posting 31 to 191 point gains. Outside factors are providing some support, with crude oil up $1.55/barrel and the US dollar index down 93 points.

The weekly Crop Progress report showed 59% of the cotton crop planted as of Sunday, 2% ahead of average. The crop was also pegged at 4% squared, 1% behind normal. The initial condition rating was tallied at 60% gd/ex. That translates to a Brugler500 index of 362, the best initial rating for the crop since 2017.

The Seam reported 620 bales sold on the platform on May 24 at an average price of 80 cents/lb. ICE certified cotton stocks were back up 621 bales on May 24 at 193,426 bales. The Cotlook A Index was up 225 points on May 24 at 90.85 cents/lb. The AWP was 62 points to 60.08 cents/lb and is good through Thursday. 

Jul 24 Cotton  closed at 82.43, up 191 points,

Dec 24 Cotton  closed at 79.12, up 111 points,

Mar 25 Cotton  closed at 80.6, up 108 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.