The Friday drop in cotton extended the pullback to 83 cents/lb for December. On net, December futures closed 1.28% lower from Friday to Friday.Â
Weekly CFTC data showed managed money firms were selling cotton during the week that ended 10/8. The new 4k shorts and 1.7k fewer longs left the group 5,688 contracts less net long. At 26,844 contracts, that is their weakest net long position since August of 2020. Commercial cotton traders were adding long hedges, which reduced their net short by 4,230 contracts to 47,714 – a 127-wk low.
Weekly cotton export sales were 144,820 RBs according to FAS data. That was a 19% increase on the week but was still 2% lighter than the same week last year. Pakistan and Bangladesh were the top buyers. Cotton shipments from the week were 168k RBs – a 4-wk low. Accumulated shipments remain 27% ahead of last year’s pace through the first 10 weeks, but are trailing 2020/21’s pace as the 2nd most in the past decade.Â
USDA’s weekly Cotton Market Review showed 1,764 bales were sold during the week, down from 2.9k last week and from 12.7k during the same week last year. The average spot price was 87.06 cents/lb. The Cotlook A index for 10/13 was 4 cents weaker to $1.02 65/100. USDA’s FSA updated the Adjusted World Price for cotton to 77.45 cents/lb. ICE certified stocks were at 880 bales on 10/13.Â
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Dec 22 Cotton  closed at 83.15, down 164 points,
Mar 23 Cotton  closed at 81.99, down 150 points,
May 23 Cotton  closed at 81.08, down 126 points
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.
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