Triple Digit Losses for Cotton

Cotton futures added another triple digits to the downside on Friday, closing 209 to 255 points lower. For July that completed the week’s trade 7.23 cents below last Friday’s close. 

NOAA’s updated 7-day QPF shows cotton area in N.E. TX and OK may get 2” accumulated rainfall or more. Most of the Gulf and S.E. coastal cotton area is forecasted to remain drier. 

The weekly CoT report showed cotton spec traders sold back longs and entered new shorts during the week ending 5/11. That reduced managed money’s net long by 2,252 contracts to 55,923. The commercial position was reported 2,292 contracts more net short to a 10 week high of 144,495 contracts. 

USDA’s 5/14 DSQ report had just 288 bales sold. The weekly Cotton Market Review noted 8,990 bales were sold through the week ending 5/13. Sales ranged from 80.80 to 85.48 c/lb for an average cash price of 84.03 cents. The 5/13 Cotlook A index was 93.40 cents/lb, which is back up by 50 points. FSA’s Adjusted World Price for cotton is 72.91 cents/lb, up from 71.39 LW.  

Jul 21 Cotton  closed at 82.43, down 255 points,

Dec 21 Cotton  closed at 81.22, down 208 points,

Mar 22 Cotton  closed at 80.9, down 214 points

Market Commentary provided by:

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