Cotton Closes with Triple Digit Losses

Friday’s cotton session worked higher initially, before turning red at the USDA release. For the close, July cotton futures were 145 points weaker, and the new crop contracts had given back 178 to 257 points. The new cash price estimates from USDA are 92c/lb for old crop, UNCH from May, and 95 cents for new crop compared to 90 cents in the May WASDE.

Data from the CFTC showed managed money funds were 2,071 contracts more net long in cotton as of 6/7 from the week prior. That came via net new buying and left the group 62,405 contracts net long. The Commitment of Traders report showed commercial cotton traders were 1,775 contracts less net short to 102,342 contracts as of 6/7. That is their weakest net short since August of 2020. 

USDA reported no changes to the old crop cotton balance sheet. New crop was also UNCH, save for the farm price. World cotton ending stocks are seen a little tighter than last month for both 2021/22 and 2022/23. 

USDA’s weekly Cotton Market Review noted the average price for the week was 135 cents/lb for the 221 bales sold at spot. The Cotlook A index was back up by 375 points on 6/9 to $1.59 10/100. 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 145.06, down 145 points,

Dec 22 Cotton  closed at 122.36, down 257 points,

Mar 23 Cotton  closed at 117.84, down 227 points