AM cotton prices are coming out of the weekend with strength, as the old crop market is up 24 points and new crop is up 40 points. After the old crop contracts were up most of the week, futures faded by triple digits on Friday. That left the March contract with a weekly gain of 42 points, the Dec contract with a weekly gain of 40 points and the old crop / new crop spread at 375 points.
CFTC reported the managed money cotton traders had closed 14.8k existing cotton shorts, and had added 11.8k new longs during the week that ended 1/23. That flipped the group back to a net long of 24.5k contracts as of the Tuesday settle. Commercial cotton traders added 27.5k new short hedges during the week, that extended their net short to 69.3k contracts.
USDA’s weekly Cotton Market Review had 95,183 bales sold for the week, quoting the average price at 81.24 cents/lb. The Cotlook A Index increased another back up by 65 points on 1/25 to 94.45 cents. ICE certified stocks were 1,949 bales as of 1/19. The AWP increased by 217 points to 67.64 cents for the week.
Mar 24 Cotton closed at 84.37, down 139 points, currently up 26 points
May 24 Cotton closed at 85.63, down 135 points, currently up 24 points
Jul 24 Cotton closed at 86.32, down 127 points, currently up 24 points
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