Traders are widening the old to new crop spread in cotton by another 83 points through midday as March is up by 52 and Dec is 31 cents weaker.
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 is at 86.89, up 40 points,
May 24 Cotton is at 87.86, up 22 points,
Jul 24 Cotton is at 88.31, up 6 points
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