Cotton Futures Higher This Morning As Funds Remain Bullish

Cotton futures are mostly 15 to 168 points higher this morning, with nearby March leading the bull charge. Cotton futures closed the last trading session of the week 143 to 212 points in the red. For the week, March cotton was 0.88% higher. New crop cotton futures were also 4 to 68 points in the red 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. 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 in the cash market 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 AWP for cotton is 110.44 cents through Thursday. 

Mar 22 Cotton  closed at 120.75, down 212 points, but are up 168 this morning

May 22 Cotton  closed at 117.98, down 169 points, but are up 155 this morning

Dec 22 Cotton  closed at 98.85, down 16 points, and are up 15 this morning.