Morning Losses in Cotton Market


Cotton prices are starting off Monday with triple digit losses of as much as 2.4 cents. Cotton futures had faded into the weekend with Friday losses of 74 to 90 points. March was still up by 209 points for the week to the highest price since the May contract high at 96.97 cents. Dec rounded out the week with a net 86 point gain. 


Zhengzhou Cotton Prices were 220 to 255 yuan/MT higher after the Lunar New Year break for Monday. The net new buying equates to a ~1.6c gain to ~ $1.02/lb. 


CFTC reported managed money cotton traders were net new buyers during the week that ended 2/13. That grew their net long by 25k contracts to 71,559. The commercial hedgers were shown with 16k fewer longs and 13k new shorts on 2/13, which left them on a 119,795 contract net short. 


USDA’s weekly Cotton Market Review showed 26,614 bales were sold during the week, averaging 88.52 cents/lb. The Cotlook A Index was back over a dollar with a 195 point increase on 2/15 to 101.45 cents/lb. The updated AWP was listed at 73.44, another 340 points higher for the week. ICE certified stocks remained at 999 bales for 2/15. 

Mar 24 Cotton  is at 94.61, down by 2 points, currently down 217 points

May 24 Cotton  is at 95.23, down by 6 points, currently down 229 points

Jul 24 Cotton  is at 95.20, down by 13 points, currently down 242 points

Dec 24 Cotton  is at 84.48, down by 36 points, currently down 151 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.