Red Start for New Week of Cotton Trading

Cotton futures went home on Monday with 10 to 91 point losses in the front months. Futures had been down as much as 244 points (Dec) overnight, but firmed up through the day session. December futures have remained between the spike high out of the WASDE rally ($1.1953/100) and the 100-day simple moving average (~ $1.1153/100).  

USDA reported 94% of the 22/23 cotton crop had set bolls by 8/28. That compares to 91% on average. 28% of the cotton was opening bolls, which was up from 19% last week and is 4% points more than average. NASS conditions were 34% good/ex, which was up 3% points from last week as southern rains did help the later maturing crops. On the Brugler500 scale that makes a 286, compared to 278 last week and 340 on average. Cotton in LA and TN dropped more than 20 points on the Brugler500 Index wk/wk, while most other states were <10 points improved. 

The USDA’s weekly Cotton Market Review had the week’s average spot price as 121.8 cents/lb, for the 2,940 bales sold at spot through the week. The Cotlook A Index (old crop) remained 132.25 cents/lb on 8/26. USDA’s AWP for cotton is 104.48. 

Oct 22 Cotton  closed at 122.02, down 10 points,

Dec 22 Cotton  closed at 117.16, down 52 points,

Mar 23 Cotton  closed at 113.67, down 70 points