Cotton rallied by the 3 cent limits on Tuesday, marking just the 16th green day since August 28th. Dec contracts had dropped a net 42.16 cents since then. The FOMC is in session today and tomorrow, with the announcement of a presumed rate hike coming tomorrow after the conclusion – analysts are looking for a 75 basis point hike with talk/hope of smaller rate hikes in the future.
Monthly NASS data showed 791 RBs of cotton were consumed during September. That was up from 777 in August but remains at record low levels for the month – data began in 2015. Stocks were down 4.5% month over month to 4,424 RBs. That is still up 8.9% from last year.
The Cotlook A Index was another 300 points weaker to 89.50 cents/lb. USDA’s AWP was 4.81 cents weaker to 68.95 cents/lb for the week.
Dec 22 Cotton closed at 75, up 300 points,
Mar 23 Cotton closed at 74.64, up 300 points,
May 23 Cotton closed at 74.85, up 300 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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