Cotton Slipping Back on Monday Morning

Cotton prices are leaning lower at midday on Monday, down 47 to 62 points from their Friday settlements. Futures had posted losses of 10 to 13 points on Friday but the most liquid December contract was still up 126 points on the week. Crude oil futures are down about 50 cents per barrel at midday, although diesel is trading to the plus side. The US dollar index is weaker, with a sharp bounce off of technical support in the euro driving most of the weakness in the DX. 

Weekly CFTC data showed a total of 7,626 contracts cut from the net short position among spec traders in cotton futures and options. The collective group was net short 38,464 contracts as of July 15.

The weather forecasts for the next week feature dryness for much of Texas, with some of the Southeast forecast to receive 1 to 2 inches, with amounts rising towards the Gulf. 

The Seam showed sales of 385 bales on Thursday, with an average price of 68.25 cents/lb. The Cotlook A Index was up .20 at 79.50 on July 18. ICE cotton stocks saw 1,144 decertifications on 7/17, with the certified stocks level at 23,481 bales. USDA’s Adjusted World Price (AWP) was up a tick on Thursday at 54.72 cents/lb. It is in effect through this coming Thursday.

Oct 25 Cotton  is at 66.5, down 62 points, 

Dec 25 Cotton  is at 68.05, down 63 points, 

Mar 26 Cotton  is at 69.4, down 58 points