Cotton #2 Futures Market News and Commentary
Cotton is working near the highs from overnight action with 15 to 23 point recovery into Tuesday’s day trade. Futures posted losses of 144 to 180 points on Monday to start the week off on a lower note. Crude oil was down $0.52/barrel, with the US dollar index 19 points lower.
The last NASS Crop Progress report for this year showed 83% of the US cotton harvest finished by 11/26, running 4% percentage points ahead of the average pace.
A delayed CFTC Commitment of Traders report tallied spec funds in cotton futures and options at a net short of just 537 contracts as of 11/21, a 5,362 contract reduction on the week.
The Cotlook A Index was steady on November 24 at 90.90 cents/lb. The AWP for this week is 65.23 cents/lb, up a penny from the week prior. The Seam had sales of 1,3459 cash bales traded on November 24 at an average price of 73.88 cents/lb, back up 2.81 cents vs. the previous day.
Dec 23 Cotton closed at 78.59, down 180 points, currently up... Read more