Thursday’s cotton market is trading triple digits higher in old crop and 3 to 41 points higher in new crop at midday. The Federal Reserve decided to maintain the 5.25% to 5.5% target rate for the Fed Funds rate, as expected, but opened the door a little wider for future rate cuts.
Weekly export demand for cotton came in at 349.4k RBs for the week that ended 1/25. That was a 69% increase wk/wk led by sales to China. New crop sales were marked at 25.2k RBs. USDA reported a MY high for export shipments with nearly 400k RBs exported for the week.
StoneX announced their estimate for Brazil’s 22/23 final cotton output as 3.33 MMT, which would be a 5% increase yr/yr.
The Cotlook A Index was 130 points lower to 93.55 cents/lb on 1/29. The Seam reported 8.2k bales were sold online for an average gross price of 77.36 cents/lb on 1/29. The AWP increased by 217 points to 67.64 cents for the week. ICE certified stocks were 999 bales as of 1/26.
Mar 24 Cotton is at 86.42, up 125 points,
May 24 Cotton is at 87.57, up 116 points,
Jul 24 Cotton is at 88.14, up 101 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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