VOT Research Desk

Market Analytics and Technical Considerations

At front month cotton futures contract lost 127 to 188 points by Friday’s close. For the December contract, there was a net 3.45% loss for the week. Futures for the new crop were steadier but lost between 17 and 21 points during the day.

Fundamentals

According to the CFTC’s weekly CoT statistics, the funds had covered 2.9k short positions as of the 11/15 week. At the settle, there were 17,660 contracts that were net long for the tended money group. During the week, advertisements closed more than 20% of their open interest! Commercial longs and shorts were both concluded, resulting in a net short position of 42,170 contracts that was 5,777 contracts greater. Deliveries of December cotton start from FND on the next Wednesday.

According to the USDA’s weekly Cotton Market Outlook, 12,604 bales were auctioned at spot during the week at a median price of 86.12 cents per pound. In contrast to 316,548 bales delivered at this point last year, MYTD spot sales stand at 57,375 bales. On 11/17, the Cotlook A Index dropped 35 points once again to 105.40 cents/l. The revised AWP for the week stands at 77.78 cents per pound, up from 76.74 cents per pound.

• Dec. 22 Cotton finished at 85.16, a decrease of 188 points.

• Cotton’s closing price on March 23 was 83.78, down 150 points.

• Cotton ended the month of May at 83.07, down 132 points.

Weekly Simple Moving Averages

Disclaimer: VOT had no positions (directly or indirectly) in any of the securities cited in this article as of the date of publishing. The sole aim of this article’s facts and material is informational.