Market Analytics and Considerations
Key notes
Futures are currently trading with declines ranging from 6 to 39 points on Monday. On Friday, cotton futures for the front month increased by 45 cents to 89 cents. This resulted in a net gain of 97 points for the week in March for the contract. Throughout the week, new crop December ended 190 points higher.
During the week that concluded on December 13, cotton speculators added futures contracts while reducing long positions, according to the CFTC’s weekly CoT report. This reduced their net long down to 10,720 from 10,537 contracts. Commercial cotton merchants increased their long positions by 4.7k, bringing their overall short position down at 36,679 deals since around 12/13.
According to the USDA’s weekly Cotton Market Review, 24,596 bales were auctioned for a weekly average of 80c/lb at spot rates. Relative to 525.3k bales sold previous season, 133.3k bales were sold in total this season. In the 12/15 update, the Cotlook A Index fell by 25 points to 99.2 cents. 3,058 bales were traded for an average gross price of 86.09 cents/lb, according to The Gap. Cotton’s AWP soared by 292 points to 72.25 cents.
- Cotton ended at 81.92 on March 23, up 89 points, but is now dropped 2 points.
- Cotton ended at 82.08 on May 23, up 84 points, but is now fallen 32 points.
- Cotton ended at 82.03 on July 23, up 78 points, but is now off 39 points.
