Cotton Slipping Lower on Friday

Cotton - jeff-hutcheson-i-62dBYw_vM-unsplash

Cotton prices are down 55 to 140 points on Friday’s midday. Cotton limits are back to 400 points, with the July contract back in the 80 cent level.  The outside market factors are supportive this go ‘round, with crude oil 83 cents lower and the US dollar index 421 points higher.

Export Sales data has shown 12.005 million RB of upland cotton sales for 23/24, which is 104% of the current USDA forecast, compared to the 110% average pace. Accumulated shipments are 8.767 milion RB, 76% of the USDA projection and on pace with normal. Total sales for new crop are now 1.65 million RB, 2.51% above last year. 

CFTC’s Cotton On-Call report showed unfixed call sales for July down 2,283 contracts to 13,769 as of May 17. Overall unfixed call sales were down just 69 contracts to 50,908, on a build for December. As of unfixed call purchases, December was up 308 contracts to a large 40,663 contracts, as the total for all contracts sits at 77,879 contracts, up 555 in total.

The Seam reported 13,216 bales sold on the platform on May 22 at an average price of 79.63 cents/lb. ICE certified cotton stocks were back up 1,283 bales on a mix of new certs and decerts on May 23 at 192,805 bales. The Cotlook A Index was up 300 points on May 23 at 88.60 cents/lb. The AWP for the next week was up 62 points to 60.08 cents/lb on Thursday and is good through next Thursday. 

Jul 24 Cotton  is at 80.4, down 132 points,

Dec 24 Cotton  is at 77.82, down 80 points,

Mar 25 Cotton  is at 79.32, down 71 points

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.