Cotton prices are starting out Thursday in the minus column, down 22 to 48 points in the actively traded contracts and up 52 in thin October. Short covering has boosted old crop July futures so far this week, with assistance from a more active export market. USDA will give us more detail on that activity momentarily. The cotton market had buyers in old crop July on Wednesday, but bulls couldn’t get anything going in new crop December futures, giving back promising early gains to settle UNCH. Nearby July was by far the strongest, up 96 points.
US dollar index futures bounced from their 100-day moving average support on Tuesday and closed higher on Wednesday to push back against the stronger export sales argument. The June dollar was the cheapest since April 10 on that Monday/Tuesday break, however.
ICE certified cotton stocks were up 1,276 bales on June 4 at 127,990 bales. There were no decerts, with 3,185 bales awaiting review. The Cotlook A Index was down another 270 points on June 4 at 82.45 cents/lb. The USDA Average World Price (AWP) is 64.37 cents/lb and will be in effect until Thursday evening
Jul 24 Cotton closed at 74.44, up 96 points, currently 48 lower
Dec 24 Cotton closed at 73.51, unch
Mar 25 Cotton closed at 75.29, up 8 points
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