Cotton Collapsing to Contract Lows for July

Cotton - tijana-drndarski-ZC76ZuGB0uo-unsplash

Cotton prices are starting off the new week with contracts down 112 to 234 points across the board, with July exploring contract lows. Futures were mixed when the final trade cleared on Friday, as July was down 38 points, with other nearby contracts up 2 to 35 points. July was down 287 points on the week, with December slipping 75 points lower. Deferred contracts retreated 8 to 34 points. The US Dollar Index was up 318 points on the session, with crude oil down 7 cents/barrel.

Spec funds in cotton futures and options keep piling onto the short side, with CFTC data showing an increase of 11,827 contracts to their net short. Their position was pegged at 35,735 contracts as of Tuesday, the largest since the fall of 2019. 

The ICE certified cotton stocks were up 1,038 bales on June 11 at 138,247 bales. There were 704 decerts, with 2,069 bales awaiting review. The Cotlook A Index was back down 85 points on June 13 at 81.85 cents/lb. The USDA Average World Price (AWP) went down 81 points to 57.32 cents per pound. That is effective through Thursday. 

Jul 24 Cotton  closed at 70.97, down 38 points, currently down 234 points

Dec 24 Cotton  closed at 72.14, up 35 points, currently down 191 points

Mar 25 Cotton  closed at 73.43, up 12 points, currently down 189 points

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.