Cotton Prices Weaker for New Crop

So far the cotton futures market is red in the new crop markets while July is firm on Thursday. Cotton futures closed 66 points weaker in the July contract. That was about 263 points off the earlier high on Wednesday. The new crop futures stayed triple digits in the red through the session, closing the midweek with 168 to 258 point losses. The Federal Reserve announced a 75 point hike to the fed funds rate, to 1.5 – 1.75%, with intentions to keep increasing 50 points through the year to a 3.4% rate. The Dollar Index was firmer and printed a new high, still the strongest since ’02, before closing weaker at 104.625.  

USDA’s Ag Attaché estimates Malaysian cotton consumption for 22/23 at 290k bales, a 3.3% drop yr/yr. 

USDA’s 6/15 Daily Spot Quotations report showed 90 bales were sold at spot. The Cotlook A index was 50 points higher to 163.55 cents on 6/14. USDA’s AWP for cotton at 134.41 cents/lb through Thursday. 

Jul 22 Cotton  closed at 142.82, down 66 points, currently up 172 points 

Dec 22 Cotton  closed at 118.07, down 258 points, currently down 19 points

Mar 23 Cotton  closed at 113.55, down 249 points, currently down 20 points