Cotton Fades into Friday

Cotton futures are down by triple digits coming into the monthly WASDE estimates. Cotton put up 190 to 589 point gains on Thursday, with old (and thin) July leading the bull charge. For the July contract that was a 4% rally and left the board just 9.44 cents under the LoC high. New crop December stayed 8.86 cents under their high. 

Weekly FAS data showed 259,200 RBs of old crop cotton was sold during the week that ended 6/2. That was a 27% drop wk/wk but was still double the 4-wk average. China and Vietnam were the top buyers. New crop business showed 102,900 RBs of cotton were sold leaving the forward book at 3.363m RBs. 

The Cotlook A index was 75 points weaker on 6/8 at 155.35 cents/lb. USDA’s FSA set the week’s AWP for cotton at 134.41 cents/lb, down from 135.36 c last week. 

Jul 22 Cotton  closed at 146.51, up 589 points, currently down 121 points

Dec 22 Cotton  closed at 124.93, up 239 points, currently down 123 points

Mar 23 Cotton  closed at 120.11, up 237 points, currently down 145 points