Cotton Closes Triple Digits Higher

Month end cotton trading left the board 103 to 154 points in the black. From open to close through April, May cotton futures were up 6.68 cents/lb. May futures officially expire next Thursday, but OI data suggests just 3 contracts remained open as of 4/29. ICE reported 66 delivery notices issued against May. December contracts gained 5.06 cents/lb through April.

China announced a 700,000 MT (3.215 million bales) addition to their import quota for cotton for non-state importers. The yearly quota was originally 894,000 MT for 2021; thus, with the addition the 2021 TRQ is 1.594 MMT (~7.32 million bales).

The Commitment of Traders report, with data from the close on 4/27, showed managed money was 58,668 contracts net long in cotton. That is a 6,776 contract larger net long from last week driven by new buying interest. Commercials had added 14,883 new shorts over the week, extending their net short in cotton to 142,755 contracts.

USDA’s weekly Cotton Market Review said 10,838 bales were sold over the week of April 29. The average spot price was 84.29 c/lb, compared to 80.94 cents and 5,810 sales last week. The Cotlook A index was down by 2 cents to 94.90 cents/lb on 4/29. The new AWP for cotton is 73.71 cents/lb after a 322 point bump.     

May 21 Cotton  closed at 87.43, up 154 points,

Jul 21 Cotton  closed at 88.08, up 154 points,

Dec 21 Cotton  closed at 85.06, up 122 points

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

Did you know Brugler Marketing & Management has more to offer to you than just this free daily commentary?! Producers just like you rely on our custom research and daily guidance on when and how to market their commodities. Click here to learn more about what we have to offer, or call 402-697-3623. Do it today!

Do you want to know what trades Alan Brugler recommends? Subscribe to Ag Market Professional, and become part of the Brugler client group! Not sure? Ask for a FREE SAMPLE and get two FREE GIFTS! Start here

Want this Ag News delivered to your inbox? Get the FREE Brugler Ag Newsletter, delivered 3 times daily.