Triple Digit Gains for Cotton Futures

With a broad commodity market rally, this morning’s action has cotton futures 152 to 155 points higher in old crop and 55 to 94 points higher in new crop. Cotton futures surrendered their early session gains, on Friday, as old crop went into the weekend 114 points lower. May cotton ended the week 135 points below last Friday. New crop futures closed the Friday session 34 to 81 points weaker. December was down 106 points from Friday to Friday and was 10.92 cents higher through the month of March. 

CFTC’s weekly data release showed managed money firms were 1,351 contracts more net long on 3/29 than the prior Tuesday’s settle. The net new spec buying moved their net position to a 6-wk high 75,707 contracts. Commercial cotton hedgers reduced their net short by 9,107 contracts to 132,866 – mainly via short hedge covering. 

USDA’s monthly Cotton Systems report showed 932 RBs of cotton were consumed during February. That was the lowest ever reported (beginning 2015, with April-Aug of 2020 withheld). Cotton stocks were down 2.7% from January to 4,431 RBs. 

USDA’s weekly Cotton Market Review showed 16,268 bales were sold for an average price of 134.86 cents. Total cotton sales were 1.553m bales through 3/31, outpacing last season by 18%. The Cotlook A index was 156.55 cents/lb on 3/31 after a 3 cent boost. USDA’s FSA raised the AWP for cotton by another 882 points to 130.89 cents. 

May 22 Cotton  closed at 134.55, down 114 points, currently up 155 points

Jul 22 Cotton  closed at 130.93, down 114 points, currently up 152 points

Dec 22 Cotton  closed at 110.68, down 60 points, currently up 94 points