Cotton Continued Higher on Friday

otton futures closed the last trade day of the week with 17 to 22 point gains. December contracts closed 42 points in the black. USDA’s preliminary Outlook Forum estimates for new crop cotton were for a 17.5m bale crop on 12m planted acres. Production was well above the trade average guess of 16.43m bales, however carryout matched expectations as USDA forecasted 3.8m bales. The cash price was set at 75 cents. The weekly CoT report showed managed money was 68,568 contracts net long in cotton futures and options as of 2/16. Commercials were 157,169 contracts net short on lighter OI. Cotton bookings from the weekly Export Sales update were 119,515 RBs. That was down 57% on the week and was 66% below the same week last year. China booked 37% of the total sales on the week, and accounts for 45% of the MYTD shipments - @ 3.377m RBs and 7.46m RBs respectively. USDA’s weekly cotton market review average price for the week ending 2/19 was 84.73 cents/lb. The Cotlook A index was 50 points higher to 95.10 cents for Feb 18. The week’s AWP for cotton was raised 2.81 cents to 73.13 cents/lb.

Mar 21 Cotton closed at 88.95, up 22 points,
May 21 Cotton closed at 90.48, up 18 points
Jul 21 Cotton closed at 91.21, up 17 points
Dec 21 Cotton closed at 85.5, up 42 points

--- provided by Brugler Marketing & Management

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