Cotton #2 Futures Market News and Commentary
After having set new LOC highs for 4 of the past 5 sessions, cotton prices retreated on Thursday. The trade day initially worked higher, with May and July each setting new highs before the pullback. At the bell, prices were 44 to 108 points in the red. For New crop, Thursday’s session ended mostly weaker, with March ’23 a point in the black.
Chinese Zhengzhou Cotton Prices are also rallying, though the front month is still 155 yuan under the October high. The March contract was 22,175 yuan/MT on 1/19 (~ $1.586/lb).
The online cotton trading platform, The Seam, reported 48,197 bales were sold for an average 116.99 cents/lb on 1/19. The Daily Spot Quotations report from USDA listed 48,413 bales sold. The Cotlook A index was 145 points stronger on 1/19 to 134.55 cents. The FAS updated the adjusted world price for cotton to 110.44 cents. That was a 4.86 cent bump and is good through next Thursday.
Mar 22 Cotton closed at 122.87, down 108 points,
May 22 Cotton ... Read more