Cotton futures used the expended limits on Monday, with nearby contracts up the new limit of 5 cents. Other contracts were up triple digits for the 23 crop. Outside factors were largely ignored, with crude oil down $4.24/barrels and the dollar index sharply higher. Follow through buying came from Friday’s USDA reports that saw a sharp cut to production on larger abandonment and lower yield.
In the weekly Crop Progress report from NASS, the cotton crop was seen at 80% setting bolls, up 2% vs. the normal pace. The crop also had 15% of the bolls open 15 faster than average. Condition ratings bounced back from last week, as 3% went back in to the gd/ex categories, to 34% gd/ex. The Brugler500 index based off those 5 USDA categories was up 5 points to 288.
The Cotlook A Index (old crop) was up 335 points at 122.75 cents on 8/12. USDA’s AWP for cotton was down 1.29 cents on Thursday, to 88.15 cents/lb. That will be updated this Thursday.
Oct 22 Cotton closed at 119.44, up 500 points,
Dec 22 Cotton closed at 113.59, up 500 points,
Mar 23 Cotton closed at 110.64, up 500 points
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