Market Analytics and Considerations
Key Notes
The Thursday afternoon has returned to a rise of 175 to 200 points thus far. Cotton futures were lower 225 and 270 points at the closing. That resulted in a net 247 point deficit for the contract for the first week of March. Although the US dollar index dipped, futures experienced an inside day since surging significantly on Tuesday. Equities futures likewise experienced an inside day, but the S&P (SPY) experienced one that was positive.
According to a survey by Cotton Grower publication, US cotton acreage will decrease by 7percentage points in 2023, with a substantially faster loss in the drought-affected KS-OK-TX region.
Crude oil futures (CLG23) lost further 4.8percent at the closure, for a significant deficit of $7.29/bbl for the entire week. The strain this theoretically puts on cotton rival synthetic materials is significant.
After a 75 point increase, the Cotlook A Index was $1 flat on the third. The week’s AWP stands at 74.50.
- Cotton for the week of March 23 closed at 80.44, down 270 points but presently up 191 points.
- Cotton for the week of May 23 finished at 80.52, off 258 points but now gained 194 points.
- Cotton for the week of July 23 finished at 80.46, off 252 points but now recovered 187 points.
