Cotton #2 Futures Market News and Commentary
Front month cotton futures are extending the overnight strength through midday of the Monday session. Futures are currently 26 to 75 points in the black and are just 25 points under the highs for the day.
USDA’s monthly data cut cotton yield by 18 lbs/acre to 765 – now the weakest since 2003, though similar to 2015. That reduced supply by 310k bales to 12.78 million. USDA cut domestic use by 150k, and lowered the unaccounted line, for a net 100k bale tighter carryout of 3.1 million bales.
The Cotlook A index was 275 points higher on 12/8 to 92.70 cents/lb. USDA’s weekly Cotton Market Review showed there were 60,915 bales sold at spot this week at an average price of 75.86 cents. The AWP for the week was lowered by 55 points to 63.63 cents/lb.
Mar 24 Cotton is at 82.09, up 65 points,
May 24 Cotton is at 82.57, up 53 points,
Jul 24 Cotton is at 82.82, up 37 pointsOn the date of publication, Alan Brugler did not have (either directly or indirect... Read more