The cotton spreads reversed a little on Thursday, with new crop gaining on old crop for a change. Net changes were -39 to up 15 points. The US Dollar Index was back up 595 points on the day, after some cooler PPI data from this morning. Treasuries rallied and interest rates declined.
Weekly Export Sales data showed 177,144 RB in old crop cotton bookings in the week that ended on June 6. That was still impressive and brought the total commitments to 12.543 million RB. Part of that is the outstanding sales total at 3.26 million RB, which may be hard to get shipped with just 8 weeks left in the MY. Shipments in the week of 6/6 ran just 186,645 RB, which was a 3-week high. New crop sales totaled 177,381 RB in that week, which was the largest forward sales so far this MY.
Warehouse cotton stocks continue to build, as ICE certified cotton stocks were up 2,689 bales on June 11 at 137,209 bales. There were 418 decerts, with 4,151 bales awaiting review. The Cotlook A Index was back up 75 points on June 12 at 82.70 cents/lb. The USDA Average World Price (AWP) went down .81 cents this week to 57.32 cents per pound. That is effective through next Thursday.
Jul 24 Cotton closed at 71.35, down 39 points,
Dec 24 Cotton closed at 71.79, up 14 points,
Mar 25 Cotton closed at 73.31, up 15 points
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