Triple Digit Cotton Rally

July cotton futures faded by 34 points on low OI on Thursday. The other nearbys were up 126 to 145 points after seeing the acreage report. December prices were still down by 23.6 cents for the month with much of that drop beginning after 6/17. 

Old crop cotton export sales were 48,123 RBs during the week of 6/23. New crop bookings were 364,415 RBs according to FAS data. That left old crop commitments at 15.6m RBs and the new crop forward sales at 11.5m RBs. 

NASS raised cotton acreage by 250k acres to 12.478 million. The trade was looking for 12.26 on average and 12.75 on the high end. Last year, 11.22m acres were planted. 

There were 792 bales of cotton sold for spot on The Seam on 6/28. The average gross price was 96.23 cents/lb. ICE certified stocks continue climbing, with 13,250 bales on hand as of 6/29. The Cotlook A index was 50 points lower on 6/29 to 135.50 cents. The new AWP for cotton is 116.83 cents/lb after another 19.12 cent drop. 

Jul 22 Cotton  closed at 103.94, down 34 points,

Dec 22 Cotton  closed at 98.84, up 136 points,

Mar 23 Cotton  closed at 94.78, up 138 points