Triple Digit Gains for Thursday Cotton

Cotton futures are working 280 points higher through midday in the July contract. New crop futures are 98 to 124 points stronger. The Dec discount to July is now 26.8 cents. 

Old crop cotton bookings from the week of 6/9 were 26,547 RBs. That was a new MY low. China was the week’s top buyer with just 7.3k RBs booked. New crop export sales were a MY high 380,223 RBs, bringing the forward book to 3.74m RB. That is up 74.5% from last year’s level, led by a 3x increase in Chinese forward purchases. China holds 19.7% of the forward book, compared to 32% of old crop and 10.4% of last year’s forward commitments. 

USDA’s 6/15 Daily Spot Quotations report showed 90 bales were sold at spot. The Cotlook A index for 6/15 was 161.30 cents/lb after a 2.25 cent dip. USDA’s AWP for cotton was 134.41 cents/lb, and will be updated after the close.  

Jul 22 Cotton  is at 145.11, up 193 points,

Dec 22 Cotton  is at 119.17, up 125 points,

Mar 23 Cotton  is at 114.92, up 137 points