Cotton is off the highs at midday, but still 40 to 76 points in the black so far following last week’s weakness. Economic concerns were front and center, notably the Chengdu COVID lockdown in China and recession nervousness in the US.
Weekly CFTC data had cotton spec traders buying cotton during the week that ended 8/30. That extended the group’s net long by 3,115 contracts to 53,893. Commercial cotton traders were shown adding hedges during the week, extending their net short by 2,411 contracts to 77,346.
NOAA’s updated 7-day QPF shows a return to dryness for the coming week, as most rain accumulations move Eastward to Georgia/South Carolina. Rain there tops out at 5” through the week, while TX/OK/MO/AR/LA will stay dry.
The Cotlook A Index dropped a nickel to 121.6 cents for 9/5. USDA’s weekly Cotton Market review showed 2,864 bales were sold at spot through the week that ended 9/1, for an average price of 120.45 cents/lb. The AWP for cotton is 104.86 cents/lb through Thursday.
Dec 22 Cotton is at 104.14, up 93 points,
Mar 23 Cotton is at 100.94, up 80 points,
May 23 Cotton is at 98.7, up 91 points
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