Cotton #2 Futures Market News and Commentary
Cotton futures closed 26 to 164 points weaker going into the Independence Day holiday weekend. Dec contracts printed a wide 410 point range, and spent time on both sides of UNCH. July futures ended the day 26 points weaker on limited OI. There were 79 deliveries against July cotton reported by the ICE. USDA’s weekly Cotton Market Review showed 792 bales of cotton were sold at spot during the week that ended 6/30. That was down from 2.6k bales last week and 4.6k bales last year. The average cash price was 109.1 cents/lb.
The (DXU22) reached the highest level in nearly 20 years during Friday markets.
Weekly CoT data had the managed money cotton specs at 46,738 contracts net long as of 6/28. That was down 14,372 contracts through the week, on 12.2k fewer longs and 2.1k new shorts. Commercial cotton traders reduced their short hedges by 13k contracts taking their net short to 85,286 contracts.
USDA’s Cotton System’s data revised April’s cotton consumption greatly lo... Read more