At the close, cotton futures were 40 to 81 points lower. The May contract was 47 points off the day’s low by the close.
Reports show Chinese purchases of Australian cotton have been on the rise, following an unofficial ban implemented during 2020’s trade disputes rumored to be lifted. Other Australian commodities have been purchased as well despite the standing official sanctions and unofficial bans. A Global Times piece suggested buyers are still taking a wait and see approach, noting the first arrival of Australian cotton was minuscule.
The Seam reported 5,190 bales sold during 2/27 for an average gross price of 82.41 cents. The Cotlook A index was another 2 cents higher on 2/27 to 99.35 cents. The AWP for cotton was 327 points lower to 70.78 cents/lb.
May 23 Cotton closed at 84.03, down 77 points,
Jul 23 Cotton closed at 84.46, down 61 points,
Dec 23 Cotton closed at 83.83, down 43 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. For more information please view the Barchart Disclosure Policy here.
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