After the old crop contracts extended their premium through the week, futures faded by triple digits to the old crop’s Friday losses of 50 points. That left the March contract with a weekly gain of 42 points, the Dec contract with a weekly gain of 40 points and the old crop / new crop spread at 375 points.
CFTC reported the managed money cotton traders had closed 14.8k existing cotton shorts, and had added 11.8k new longs during the week that ended 1/23. That flipped the group back to a net long of 24.5k contracts as of the Tuesday settle. Commercial cotton traders added 27.5k new short hedges during the week, that extended their net short to 69.3k contracts.
USDA’s weekly Cotton Market Review had 95,183 bales sold for the week, quoting the average price at 81.24 cents/lb. The Cotlook A Index increased another back up by 65 points on 1/25 to 94.45 cents. ICE certified stocks were 1,949 bales as of 1/19. The AWP increased by 217 points to 67.64 cents for the week.
Mar 24 Cotton closed at 84.37, down 139 points,
May 24 Cotton closed at 85.63, down 135 points,
Jul 24 Cotton closed at 86.32, down 127 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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