Front month cotton futures were 80 points to 386 points lower across the front months after the March contract’s limit loss.
Weekly CFTC data showed cotton spec traders were closing shorts during the week that ended 3/5. That grew their net long to 96k contracts. The commercial position was little changed on the week with minor new hedges added to both sides.
USDA cut the cotton yield by another 23 lbs per acre to 822. That lowered production and tightened stocks with no other change to use. Cotton stocks are now projected at the tightest since 12/13 at 2.5 million lbs. Stx/Use is still just a 2-year low,
The Cotlook A Index fell by 30 points to 101.05 cents/lb on 3/5. The Seam reported 8,510 bales sold online on 3/7 with an average gross price of 87.17 cents. The AWP was down 59 points to 76.88 cents/lb. ICE certified stocks were 1,636 bales as of 3/4.
May 24 Cotton closed at 95.28, down 400 points,
Jul 24 Cotton closed at 93.92, down 386 points,
Dec 24 Cotton closed at 82.99, down 135 points
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