Cotton #2 Futures Market News and Commentary
The Friday cotton market stayed in a 235 point range, after an overnight / early session pullback. Futures ultimately firmed up during the afternoon and ended the day 18 to 88 points higher. October futures, with no limits during the delivery period, closed 611 points higher at 93.22 cents. Preliminary OI was still just 14 contracts as of 9/29’s settle. ICE had 9 deliveries against the October contract with Term Commodities the issuer and SG Americas the stopper. There have been 12 deliveries issued against Oct cotton.
CFTC’s weekly CoT report showed cotton spec traders were 910 contracts less net long through the week that ended 9/27. That left the group at an 8-wk low net long of 41,183 contracts. Commercial traders were adding more long hedges through the week than shorts, for a 6,272 contract weaker net short on 12.3k new contracts of OI. The commercial net short was 52,615k contracts as of 9/27.
The Cotlook A Index was 107.10 on 9/29 after a 40 point boost. USDA’s... Read more