Cotton #2 Futures Market News and Commentary
Cotton prices rallied into the weekend. Nearby futures were up more than 3 cents through March, while the deferred contracts gained 232 to 275 points. December’s 353 point rally extended the inverse to an 86 premium to March and a 228 premium to May. Crude Oil continues its bounce through Friday, with another 65 cents/bbl increase to $72.91. Dollar Index was higher in the morning and held on for a modest daily gain of 0.25%.
CFTC’s Commitment of Traders report showed cotton specs cut their net long by 10,645 contracts through the week that ended 9/21. Long liquidation was the driver, leaving the group 81,272 contracts net long. Commercials closed out 19,402 short hedges, reducing their net short to 149,390 contracts.
The weekly Cotton Market Review showed 9,335 bales were sold at spot during the week ending 9/24, with an average selling price of 87.71 cents. The Cotlook A index was 90 points stronger on 9/23 to 101.25 cents/lb. The updated Adjusted World Price for cott... Read more