Cotton Sparks Rally to Begin Week


Cotton prices were up triple digits on Monday, with contracts up 104 to 123 points in the front months. Today is First Notice Day (FND) for deliveries against July contract futures, which means no limits, as the contract was up 310 points.  Outside factors are supportive today, with crude oil up $1.01/barrel, as the US dollar index was down 298 points. 

The weekly NASS Crop Progress report pegged 94% of the US cotton crop planted, lagging the 96% average pace. The crop was 30% squared with 8% setting bolls, both ahead of normal. Condition ratings were up a total of 1% to 56% gd/ex, as the Brugler500 index was down 4 points on a shift in higher very poor ratings to 342. 

CFTC data pegged specs in cotton futures and options nearing a record net short position as od June 18 at 44,019 contracts. That was a move of 8,284 contracts to the short side in that week and is just over 3,000 contracts from a record net short. 

The ICE certified cotton stocks were down 8,678 bales on June 21 at 127,978 bales. There were 9,832 decerts, 1,154 new certs and 1,093 bales awaiting review. The Cotlook A Index was unchanged on June 21 at 82.70 cents/lb. The USDA Average World Price (AWP) was down another 67 points to 56.65 cents per pound on Thursday. It is good through next week. 

Jul 24 Cotton  closed at 71.29, up 310 points,

Dec 24 Cotton  closed at 73.39, up 118 points,

Mar 25 Cotton  closed at 74.83, up 123 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.