Market Analytics and Technical Considerations
Key Points
Five contracts have been delivered for December as of now, and the contract traded 445 points high on the no limit. Through May 23, the other front months came to a stop at their 4 cent allotted limit, but July had a day-to-day increase of 393 points. fresh crop The first time since September 22nd, December ended over 80 cents (the contract reached 81 cents on November 16 but couldn’t maintain at the closure). Following a speech by Fed chair Powell that hinted fewer rate rises were imminent, stock market futures (($DOWI), (QQQ)) shot dramatically higher on economic confidence.
Contrary to the official forecast of 1.4 million bales, USDA’s Attache predicts Mexico’s cotton crop will yield 1.46 million bales. Their original plan to sell 400k bales was reduced by 100k after domestic use increased.
1,735 bales were purchased online on 11/29 for an estimated gross value of 83.84 cents. On 11/29, the Cotlook A Index stood at 97.50 cents, 120 points lower. For the week AWP decreased by 317 points to 74.61 cents. 8,901 bales were ICE approved holdings as of November 28.
Dec. 22 Cotton finished at 86.05. This was a 445 point increase.
Cotton finished on March 23 at 84.61, gaining 400 points.
Cotton ended on May 23 at 84.03, gaining 400 points.
