Cotton traders weren’t content to try to carry winning long positions (3 day rally) over the weekend. A sharply stronger US dollar is among several factors encouraging some profit taking. US employment gains were larger than expected in May, with unemployment rising to 4%. The combination argues against Fed rate cuts in the short term according to some economists. July cottn futures are down 133 points heading into noon in the Central time zone. December is down 84 points.
ICE certified cotton stocks were up 1,156 bales on June 5 at 129,146 bales. There were no decerts, with 3,531 bales awaiting review. The Cotlook A Index was up 90 points on June 6 at 83.65 cents/lb. The USDA Average World Price (AWP) is 58.13 through next Thursday, dropping 6.24 cents/lb from the previous week.
Jul 24 Cotton is at 74.11, down 133 points,
Dec 24 Cotton is at 72.88, down 72 points,
Mar 25 Cotton is at 74.58, down 84 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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