Turnaround Tuesday for Cotton

Cotton futures are bouncing into a possible Turnaround Tuesday. Expanded limits for Tuesday are 5 c/lb. New crop cotton had reached their 4 cent trading limit before Monday’s midday and remained locked there into the close. For December that marked the 5th consecutive triple digit loss, a net 24.24 cent drop. December cotton closed at levels not seen since January, and a near 30% lower mark than the contract high from May 17th. Old crop July’s session ended with a 341 point drop. As of the 6/24 settle, OI in July was just 227 contracts – matching the thinly traded October contract. 

NASS reported 33% of the cotton crop was squaring as of 6/26. That was up 11% points wk/wk and matches the average pace. The Crop Progress report had 8% of the crop setting bolls, compared with 6% last week and the 7% average. National conditions were down 12 points on the Brugler500 Index through the week to the lowest reading of the season – 298. Just KS and AZ improved wk/wk at the state level, while TN was down by more than 30 points. Mississippi cotton was also 20 points lower on the Brugler500 index. 

The 6/24 Cotlook A index was another 620 points lower to 144.30 cents. USDA lowered the Adjusted World Price for cotton by 4.52 cents to 135.95 c/lb.  

Jul 22 Cotton  closed at 100.35, down 341 points, currently up 265 points 

Dec 22 Cotton  closed at 94.05, down 400 points, currently up 257 points

Mar 23 Cotton  closed at 89.52, down 400 points, currently up 296 points