Cotton Pulls Back for Weekend

After setting new highs overnight, cotton futures pulled back triple digits during the day session. New crop December traded 43 points lower. Official December cotton exports were 1.4 million bales. That was up 7% from November and 8% yr/yr. CFTC data as of Feb 2nd showed managed money cotton traders were 3,955 contracts less net long via long liquidation. The group was still 63,706 contracts net long. The commercial position was 4,880 contracts less net short on the week. USDA’s weekly Cotton Market Review said 42,139 bales were sold on the week ending 02/04. That compares to 33.5k LW and 22.3k LY. The average price was 77.4 cents/lb. The daily Cotton Spot Quotations report showed a large 22,864 bales sold on the upswing, the average price is now 80.35 cents/lb maintaining basis. The national average basis from cmdtyView is minus 2 cents. The 02/04 Cotlook A index was up another 25 points to 87.70 cents per pound. USDA lowered the week’s Adjusted World Price for cotton by 121 points to 66.38 cents/lb.

Mar 21 Cotton closed at 82.74, down 154 points,
May 21 Cotton closed at 84.02, down 147 points
Jul 21 Cotton closed at 84.84, down 137 points
Dec 21 Cotton closed at 80.64, down 43 points

--- provided by Brugler Marketing & Management

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