Cotton #2 Futures Market News and Commentary
Friday’s trading pulled cotton futures back 278 to 543 points after Thursday’s triple digit bounce. The old crop July contract was the weakest on the day, but held above the Thursday low. July cotton went home 293 points under last Friday’s settle, and December was 281 points lower wk/wk.
CFTC data from the week that ended 5/17 showed cotton speculative traders were 3,041 contracts less net long to 67,686. That was mainly fueled by the funds closing existing longs. Commercial cotton traders lightened their net short through the week, as the new end user hedges outweighed the elevator hedges. The group was 2,400 contracts less net short to 115,095 contracts.
USDA’s weekly Cotton Market Review showed 2,398 bales were sold during the week that ended 5/19 for an average price of 142.3 cents/lb. The Cotlook A index was 4 cents weaker to 163 c/lb on 5/19. USDA the cotton AWP to 143.24 cents/lb, up 242 points from last week. It is in effect through next Thursday.
Jul 22... Read more