Friday Fading for Front Month Cotton

Cotton prices closed the last trading session of the week 143 to 212 points in the red. Earlier in the session, prices had rallied by more than a penny to close their overnight gap. For the week, March cotton was 0.88% higher. New crop cotton futures were also 4 to 68 points in the red at the settle on Friday. 

Weekly CFTC data showed managed money firms were 844 contracts more net long in cotton during the week that ended 1/18. The net new buying left the group 77,608 contracts net long. Commercial cotton traders added hedges on both sides for just a 302 contract stronger net short. Commercial OI increased 8,940 contracts through the week and the group was 152,697 contracts net short on 1/18. 

Cotton bookings from the weekly Export Sales report were 273,045 RBs. That was down 32% from last week and was 7% below the same week last year. Pakistan and China were the week’s top buyers. FAS had cotton shipments from the week that ended 1/13 at 198,682 RBs. The top destinations were China and Vietnam. Accumulated bookings were up to 11.27m RBs as of 1/13, which was 7.3% behind last season’s pace. 

USDA’s weekly Cotton Market Review reported 133,793 bales were sold during the week for an average cash price of 118.50 cents. The Cotlook A index was 137.50 cents/lb on 1/20, up by another 295 points. The FAS updated the adjusted world price for cotton to 110.44 cents. That was a 4.86 cent bump and is good through next Thursday. 

Mar 22 Cotton  closed at 120.75, down 212 points,

May 22 Cotton  closed at 117.98, down 169 points,

Dec 22 Cotton  closed at 98.85, down 16 points