Cotton Bouncing Back

Cotton is set to start the new week with a wide range from overnight action. July prices already have a 214 point range, and are working back into the black. Traders took profits on Friday for cotton. July reached a new contract high of $1.51, but ultimately closed 205 points in the red for the day. New crop cotton went home on Friday 248 to 293 points in the red. For July, that only limited the week’s gain to 9.78 cents, and Dec’s rally to 2.91 cents. For the month of April, cotton futures were 16.64 cents higher in old crop and 10.79 cents higher in new crop. 

Weekly CoT data showed cotton spec traders were 69,273 contracts net long as of 4/26. That was down 4,239 contracts from their net long a week earlier on long liquidation. Commercial cotton traders also closed positions, lightening their OI by 11,252 contracts to 195,620. Of that, the commercials were 122,036 contracts net short by the 4/26 settle. 

ICE confirmed no deliveries were issued against May cotton through 4/29, with expiration fast approaching and almost no open interest remaining. The Cotlook A index was a sharp 480 points higher to 159.05 cents. USDA’s AWP for cotton is 138.6 cents.  

Jul 22 Cotton  closed at 145.63, down 205 points, currently up 44 points

Dec 22 Cotton  closed at 122.07, down 293 points, currently down 2 points

Mar 23 Cotton  closed at 117.53, down 258 points, currently down 6 points