Cotton prices are down 50 to 112 points as traders shift attention toward weekend holdings. Cotton futures had a reality check on Thursday, as contracts were down 130 to 334 points at the close. July futures erased more than 4 gains of gains. Rain across much of cotton country was pressure for the market, as crop conditions are already off to a decent start. Due to the drop back into the 70 cent level, cotton price limits are back to 3 cents/lb. Outside factors are showing crude oil down $1.35/barrel, with the US dollar index down 350 points.
CFTC’s Cotton On-Call report showed a 3,331 contract drop to the unfixed call sales position as of 5/24 at 10,438. The total unfixed call sales position was up 86 contracts at 50,994 contracts. Unfixed call purchases were up 2,952 contracts to 80,831 in total.
ICE certified cotton stocks were down a massive 60,242 bales on May 29 at 133,448 bales. The Cotlook A Index was 170 points on May 28 at 91.30 cents/lb. The USDA Average World Price (AWP) was raised 429 points to 64.37 cents/lb and will be in effect until next Thursday.
Jul 24 Cotton closed at 77.76, down 334 points, currently down 50 points
Dec 24 Cotton closed at 76.51, down 159 points, currently down 55 points
Mar 25 Cotton closed at 78.29, down 134 points currently down 89 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.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
