Old crop cotton is trading mostly red at midday, but within 5 points of UNCH. The new crop market is up by as much as 51 points to narrow the spread. Dec remains a 323 point discount to the spot quote.
NOAA’s update 7-day QPF has more rainfall for the TX/LA Gulf, with accumulations of as much as 4”. Most areas, including N.W. TX and OK, will expect to receive 1”. Northern MS/AL/GA will mostly miss out.
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.
The Cotlook A Index for 1/26 was another 40 points stronger to 94.85 cents. USDA’s weekly Cotton Market Review had 95,183 bales sold for the week, quoting the average price at 81.24 cents/lb 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 is at 84.37, unch
May 24 Cotton is at 85.61, down 2 points,
Jul 24 Cotton is at 86.35, up 3 points
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