Cotton Correction Continued

Through the Friday close, cotton prices were down 486 points in July and 332 points in December from last Thursday’s weekly close. On Friday the board went home 79 to 239 points lower for the front months. May cotton futures were higher, bouncing late in the day with an 87 point gain. From Thursday to Friday May cotton was 252 points lower. May also had just 829 contracts of OI remaining as of 4/21 with FND on Monday. 

The weekly CoT report confirmed the spec bulls were taking profits through the week of 4/19. Managed money longs closed 4,554 contracts through the week, and paired with light new spec selling, weakened their net position by 4,794 contracts to 73,512 contracts net long. Commercial cotton traders also liquidated hedges through the week, with a net 22,441 contract lighter OI and a 6,841 contract lighter net short. Commercials were still net short 128,322 contracts as of 4/19. 

The Cotlook A index was up half a cent to 157.20 cents per pound. USDA’s AWP for cotton was raised by a nickel to 136.20 cents. ICE certified stocks remained at 1,101 bales for 4/21.

May 22 Cotton  closed at 139.46, up 87 points,

Jul 22 Cotton  closed at 135.85, down 204 points,

Dec 22 Cotton  closed at 119.16, down 102 points