Cotton came out of the weekend with strong gains overnight. The board then began giving it back for AM quotes 5 to 25 points in the black and a penny off their highs. Friday’s pullback limited last week’s net gain with 10 to 136 point losses for the day. December was down the most but held onto a net 53 point gain for the week. March futures ended the week up by 127 points Friday to Friday and are now at a 92 point premium to December. Friday’s Dollar Index cooled off after an impressive run from $99.26 in July to a 6-mo high $105.43 – including a $0.180 point rally last week.
The weekly Commitment of Traders report showed long liquidation from managed money cotton traders. That reduced the groups net long by 5,217 contracts to 46,954. Commercial hedgers closed shorts and added longs through the week for an 8,313 contract weaker net short of 95,097 contracts.
USDA reported 115,508 bales were classed in TX last week and 713 bales were classed in confidentiality protected other states. The season’s total reached 648,087 bales. That compares to last year’s 683,303 bales pace.
USDA’s weekly Cotton Market Review had 9,947 bales sold at spot for an average price of 81.19 cents/lb. The Cotlook A Index was 115 points weaker on 9/14 to 97.5 cents/lb. The AWP for cotton was lowered 1.6 cents to 71.95 cents/lb. ICE Certified Stocks were 2,652 bales on 9/8.
Dec 23 Cotton closed at 86.44, down 136 points, currently up 25 points
Mar 24 Cotton closed at 87.36, down 87 points, currently up 6 points
May 24 Cotton closed at 87.84, down 57 points, currently up 11 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.
