Front month cotton prices rebounded into the extended weekend. Futures settled 91 to 160 points in the black on Friday. For March that added to the week’s move, which despite the limit drop on Thursday, left the contract up by a net 329 points Friday to Friday. Dec cotton remains a 269 point discount to the spot prices.
CFTC’s weekly CoT report showed light short covering from the managed money funds during the week that ended 12/20. That lifted their net long by 1,784 contracts to 12,504. Commercial traders were 5,047 contracts more net short to 41,726 contracts.
USDA’s weekly Cotton Market Review had the week’s spot sales totaling 53,946 bales on an average price of 84.45 cents. The season’s sales reached 187k bales, down from 639k bales last year. The Cotlook A Index was 50 points higher to 105.55 cents per pound. The updated AWP for cotton is 75.57 cents/lb, up by 332 points.
Mar 23 Cotton closed at 85.21, up 91 points,
May 23 Cotton closed at 85.18, up 133 points,
Jul 23 Cotton closed at 84.91, up 140 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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