Cotton Posting Month Morning Gains
Cotton prices are up 34 to 54 points to start a new month. They closed Friday with contracts down 30 to 221 points, as USDA reported a larger swing to cotton acres this spring than initially thought. December was up 66 points this week, after dropping 242 points in June. The outside factors did not help matters, with crude oil down 25 cents/barrel.
The Acreage report released by NASS pegged 2024 US cotton at 11.67 million acres, a near 1 million acre increase over the March Intentions. That was also more than 850,000 acres above estimates, as well as exceeding the top end.
Spec funds in cotton futures and options trimmed their net short position by 7,281 contracts in the week ending June 25, to 36,738.
ICE certified cotton stocks were 59,035 bales on June 27. The Cotlook A Index was up 25 points on June 27 at 85.45 cents/lb. The USDA Average World Price (AWP) rebounded from the previous week decline, up 1.58 to 58.23 cents per pound. It will be in effect through July 4. Because of the holiday, the next AWP, FCA, CCA and LDP rate announcement from FSA will be on Friday, July 5 at 8 AM EDT.
Jul 24 Cotton closed at 69.81, down 221 points, currently up 54 points
Dec 24 Cotton closed at 72.69, down 189 points, currently up 50 points
Mar 25 Cotton closed at 74.36, down 163 points, currently up 48 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.