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Cotton: You Just Can't Keep a Bear From GrowlingCotton prices were down 99 to 139 points at the close, with thinly traded October the weakest but active December not far behind. Crude oil was down $2.69 per barrel to add some pressure via the synthetic fiber market, and the stock markets were also having a bad day. The forecast calls for rains over the southeast US this next week, as well as much of TX, adding to pressure at the end of the week. US Cotton export sales commitments are now 13.019 million RB, which is 119% of the USDA forecast and 3% above the 5-year average pace. Actual shipments are 10.07 million RB for the marketing year, which is nearing it’s end. That is 92% of the USDA projection, when would on average be 94% by now. Friday’s Commitment of Traders report showed the spec funds still net short 40,226 contracts of cotton futures and options at end of day on July 16. That was a net reduction of 223 contracts from the previous week. ICE cotton stocks were down 703 bales on July 18 from decertification, leaving 40,419 bales of cert stocks. The Cotlook A Index was back up 65 points on July 18 at 82.35 cents/lb. The USDA Average World Price (AWP) was raised 34 points on Thursday to 56.42 cents/lb. It is in effect through next Thursday. Dec 24 Cotton closed at 70.7, down 123 points, Mar 25 Cotton closed at 72.62, down 114 points, May 25 Cotton closed at 74, down 107 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. |
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