Nearby cotton markets are working off their lows into the new week, but are still down by 70 to 106 points. Front month cotton futures added triple digits to the climb on Friday. Dec cotton closed up by another 4.73%, for a mammoth weekly gain of 20.5%! The December to December inverse is now an 8.56 cent premium for the spot month.Â
CoT data released after the close showed managed money funds were 7,837 contracts less net long through the week that ended 11/1. That came via 6.3k new shorts and reduced their net long to just 5,443 contracts – the weakest since June of 2020 and a near ideal set up for a short covering rally. Commercial cotton traders reduced short hedges during the week, and were left 22,418 contracts net short as of 11/1.Â
USDA’s weekly Cotton Market Review showed 3,057 bales were sold through the week for an average price of 76.61 cents/lb. The Cotlook A Index was 92.20 cents/lb after a 3 cent increase on 11/2. USDA updated the AWP for cotton to 65.46 cents, down by 349 points.Â
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Dec 22 Cotton  closed at 86.93, up 393 points, currently down 66 points
Mar 23 Cotton  closed at 85.67, up 350 points, currently down 97 points
May 23 Cotton  closed at 84.63, up 263 points, currently down 98 points
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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.
