Cotton traded lower overnight though climbed back to limit the weakness for the AM market. Old crop futures are still 11 to 41 points weaker. March ’25 futures rallied through the overnight session, and the contract sits 42 points in the black into the day session. The cotton futures market closed the first trade day of the new month 36 to 132 points in the black. March futures had seen a 6.27 cent range during January and netted a 417 point gain. Conversely, Dec futures were up by 214 points during the month of Jan.
Weekly export demand for cotton came in at 349.4k RBs for the week that ended 1/25. That was a 69% increase wk/wk led by sales to China. Total old crop commitments sit at 9.86m RBs, which remains 4.3% ahead of last year’s pace. USDA reported a MY high for export shipments with nearly 400k RBs exported for the week, and set the season’s total shipment at 4.3m RBs.
StoneX announced their estimate for Brazil’s 22/23 final cotton output as 3.33 MMT, which would be a 5% increase yr/yr.
The Cotlook A Index was 130 points lower to 93.55 cents/lb on 1/29. The Seam reported 8.2k bales were sold online for an average gross price of 77.36 cents/lb on 1/29. The AWP increased by 217 points to 67.64 cents for the coming week. ICE certified stocks were only 999 bales as of 1/26, with the March contract delivery period just a few weeks away.
Mar 24 Cotton closed at 86.49, up 132 points, currently down 6 points
May 24 Cotton closed at 87.64, up 123 points currently down 27 points,
Jul 24 Cotton closed at 88.25, up 112 points, currently down 41 points
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