Friday Rally for Cotton Futures

The front month cotton futures market rallied triple digits for the last trade day of the week. The March contract traded with a 560 point range on Friday, setting a new contract high in the process, before ultimately going home 213 points in the black. For the week, March cotton rallied 301 points. New crop prices were also stronger on Friday, closing 61 to 100 points higher. 

The weekly CoT report from CFTC showed managed money was 76,396 contracts net long in cotton as of 1/25. That was a 1,212 contract lighter net position from week to week, driven by light new short selling. The commercial net position was 4,728 contracts less net short, at 147,969 contracts, as end users were adding long hedges through the week. 

The weekly Cotton Market Review showed 97,052 bales were sold at spot for the week that ended 1/27, with an average cash price of 117.64 cents. The Season update to cotton classings had 15.772m bales classed through the Jan 28 report. That compares to 13.3m bales at the same point last season. For pima USDA had 285,225 bales classed, 29% fewer yr/yr. The Cotlook A index was back 135 points higher at 136.45 cents for 1/27. The new FSA AWP for cotton is 1.99 cents higher for the coming week at 112.43 cents/lb.

Mar 22 Cotton  closed at 123.76, up 213 points,

May 22 Cotton  closed at 120.84, up 148 points,

Dec 22 Cotton  closed at 99.73, up 90 points