Cotton Heads for March on Weakness

The last Friday of February left front month cotton futures 42 to 86 points weaker. Closing the month at 87.82 for March and 88.83 for May, that was a monthly gain of 7.14 and 6.9 cents respectively. New crop December futures are now a 4.50 discount to front month May, after beginning Feb 4.32 cents discount.

CFTC data as of 2/23 showed cotton spec traders were 3,886 contracts more net long to 72,454 contracts. That came via new buying and left managed money the most net long since 8/14 of 2018. For commercials, the increased OI nearly balanced the new longs and shorts, as the net short only grew 458 contracts to 157,627.

USDA’s Weekly Cotton Market review stated the week’s 86.90 cent/lb average price was the highest since 90.27 for the week ending 6/14 of 2018. The report showed 16,250 bales were sold at spot on the week ending 2/25. The Cotlook A index for 2/25 was 98.5 cents/lb, up another 98 points. The new USDA AWP for cotton is 75.76, up from 73.13 cents/lb last week.

--- provided by Brugler Marketing & Management

Cotton Prices by Barchart

Market Commentary provided by:

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