Cotton Futures Continue Assault on 2011 Price Peak

Cotton traded above $1.26 per pound overnight, with futures currently 104 to 122 points above their Friday close. On Friday, the March contract traded with a 560 point range and set 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 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. Cotton classings for the season have risen to 15.772m bales as of 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, up 222 points this morning

May 22 Cotton  closed at 120.84, up 148 points, up 191 points this morning

Dec 22 Cotton  closed at 99.73, up 90 points, up 104 points this morning