Cotton Firms Up for the Weekend

After pushing the downside nearly all week, the Friday cotton session limited the drop with 53 to 79 point gains. December still gave back 4 cents/lb from Friday to Friday.  

CFTC data revealed cotton spec traders were net new buyers during the week that ended 9/5. The 12k new longs in addition to the 1.7k fewer spec shorts left the group at a yearly high 52.2k contract net long. The commercial cotton traders opened more short hedges than long hedges and extended their net short by 14.5k contracts to 103,410. 

NOOA’s updated 7-day QPF has rain in N. TX through W. KS, which may stall harvest. MS and GA will remain dry, with limited rainfall for AL. 

Weekly Export Sales data showed 85,093 RBs of cotton was sold during the week that ended 8/31. That was up from 61k RBs last week but was only 37% of the same week last year. Mexico and Costa Rica were the week’s top buyers. Cotton exports came in at 175,351 RBs for a season total of 924,911 RBs. That trails last year’s pace by 27%. 

USDA’s weekly Classings summary showed 141,922 bales were classed in TX for a season total of 531,866 bales. No other states have begun submitting sufficient data. 

The weekly Cotton Market Review from USDA had 11,118 bales sold during the week for an average price of 81.72 cents. The Cotlook A Index fell back 160 points to 97.40 cents/lb for 9/7. The updated AWP for cotton was 73.55 cents/lb, up by 199 points from last week. ICE Certified Stocks were 2,352 bales on 9/7. 

Dec 23 Cotton  closed at 85.91, up 53 points,

Mar 24 Cotton  closed at 86.09, up 53 points,

May 24 Cotton  closed at 86.28, up 55 points