Cotton Up 28 to 41 Points

Futures were up 28 to 41 points overnight, ignoring the illiquid October contract (up 187). Futures were 103 to 154 points in the black on Friday. May cotton futures were up 6.68 cents/lb for the month of April. May futures officially expire next Thursday, but are basically dead now. 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.     

Jul 21 Cotton  closed at 88.08, up 154 points, and up 33 points this morning

Dec 21 Cotton  closed at 85.06, up 122 points, and up 41 this morning

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