Cotton Market Rallying Through Wednesday

Cotton - jordan-jensen-RTDb00SNeKA-unsplash

The front month cotton futures are trading 271 to 312 points higher with a triple digit old crop rally on Wednesday. New crop futures are also higher, though gains are limited to 54 to 85 points so far. The US dollar index was up 723 points on the day, as CPI inflation data came in higher than expected (core +3.9%). Crude oil futures helped things out, with gains of $0.68/barrel.

The trade is looking for USDA’s Ag Outlook Forum to show 10.7 million cotton acres this spring. That would be just a slight 400,000 acre increase vs. last year if realized. 

The Cotlook A Index was 80 points weaker on 2/13 to 98.85 cents. The Seam reported 6,099 bales sold on Monday at an average price of 86.98 cents/lb. The AWP is 70.04 cents/lb. It will be updated on Thursday.

Mar 24 Cotton  is at 93.77, up 225 points,

May 24 Cotton  is at 94.7, up 264 points,

Jul 24 Cotton  is at 94.47, up 229 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.