Cotton is trading 8 to 40 points higher in the new crop contracts, but 60 to 120 points stronger in the old crop so far on Monday. Front month cotton futures were 80 points to 386 points lower across the front months after the March contract’s limit loss. After the dust settled, May cotton finished out the week 29 points under the previous Friday’s close, while Dec held onto a 4 point gain for the week. 

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 average US 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. The 2023/24 Stx/Use ratio is the second tightest since 2016/17, trailing the 16.8% ratio set in 2020/21 in a larger export year.  

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, currently up 69 points

Jul 24 Cotton  closed at 93.92, down 386 points, currently up 120 points

Dec 24 Cotton  closed at 82.99, down 135 points, currently up 21 points


On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.

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