Cotton #2 Futures Market News and Commentary
Cotton started the Friday session with an attempted bounce, but flipped back to red for the day. The additional 47 to 56 point losses on Friday left the front months lower for the week’s move. December was down 56 points on the day and a net 53 points for the week.
The weekly Commitment of Traders report showed managed money traders closed more longs than shorts during the week that ended 9/19. That reduced their net long by 245 contracts, on 4.2k less OI, to 46,709. The commercial hedgers added 9.3k new hedges on both sides, for little change to their 95.4k contract net short.
NOAA’s updated 7-day QPF has some moisture for the cotton fields. E. TX will see more than 1” as will W. MS. The heaviest rainfall from that system is in W. OK with accumulations near 3”. Separately, the tropical storm along the East Coast has rain for NC. Alabama, GA, TN, and most of SC will stay drier with rainfall topping out near 1”.
USDA had 102,824 bales classed during the week, wit... Read more