Cotton Pushing Higher on Tuesday Morning

Cotton prices are up 38 to 76 points so far on Tuesday. They were up triple digits on Monday, with contracts up 104 to 123 points in the front months. Monday was First Notice Day (FND) for deliveries against July contract futures, which means no limits, and that contract was up 310 points.  Outside factors were supportive, with crude oil up $1.01/barrel, as the US dollar index was down 298 points. 

The weekly NASS Crop Progress report showed 94% of the US cotton crop planted, lagging the 96% average pace. The crop was 30% squared with 8% setting bolls, both ahead of normal. Condition ratings were up 1% point to 56% gd/ex, as the Brugler500 index was down 4 points at 342 on a shift to more very poor ratings. 

CFTC data showed spec funds in cotton futures and options nearing a record net short position as of June 18 at 44,019 contracts. That was a move of 8,284 contracts to the short side in that week and is just over 3,000 contracts from a record net short for the funds. 

The ICE certified cotton stocks were down 8,678 bales on June 21 at 127,978 bales. There were 9,832 decerts, 1,154 new certs and 1,093 bales awaiting review. The Cotlook A Index was unchanged on June 21 at 82.70 cents/lb. The USDA Average World Price (AWP) was down another 67 points to 56.65 cents per pound on Thursday. It is good through next week. 

Jul 24 Cotton  closed at 71.29, up 310 points, currently up 76 points

Dec 24 Cotton  closed at 73.39, up 118 points, currently up 39 points

Mar 25 Cotton  closed at 74.83, up 123 points currently up 39 points