July Collapses Overnight

With July cotton options off the table, and with them the limit on daily price moves, the board dropped over 23 cents to $1.13/lb overnight. Currently this morning July futures are down 10.8% to $1.21 60/100. New crop cotton also looks to start the Friday session with triple digit weakness of 56 to 111 points. July cotton was lock limit down at 136.32 cents for most of the Thursday session. That came after July had been holding relatively firm compared to the new crop drops. New crop cotton futures ended the day 550 to 606 points in the red as well. For December, that had the board just 2 cents above the $1 mark, a level not the market hasn’t closed below since January. 

NOAA’s updated QPF shows light rainfall for the Gulf and Southeastern Coastlines. Deeper inland fields will mostly miss out on more than 1/2” through the week. Central TX will get spotty activity from the named tropical storm Celia – which is set to stay Southwest of Mexico. 

The Cotlook A index was 480 points lower on 6/22 to 156.50 cents. USDA lowered the Adjusted World Price for cotton by 4.52 cents to 135.95 c/lb.  

Jul 22 Cotton  closed at 136.32, down 700 points, currently down 1472 points

Dec 22 Cotton  closed at 102.01, down 606 points, currently down 54 points

Mar 23 Cotton  closed at 97.73, down 594 points, currently down 89 points