Cotton Rallies Back into the Weekend

Cotton futures saw strength on Friday, with contracts closing steady to 112 higher across the board. December was still down 383 points on the week, despite the Friday gains. Crude oil was back down $1.61 per barrel on the session, with the US dollar index back down $0.203.

The weekly CFTC update via the commitment of traders report showed spec traders in cotton futures and options trimming back their large net long position by 7,017 contracts in the week ending on September 29th, taking it to 74,593 contracts.

USDA’s Export Sales report shows all cotton export commitments at 4.937 million RB, which is 17% above the same period last year. That is also 43% of the USDA export projection and behind the 51% average pace.

The Cotlook A index was down 30 points on Thursday at 89.15. ICE certified cotton stocks were unchanged on October 1, with the certified stocks level at 28,017 bales. The Adjusted World Price was down 93 points on Friday to 65.16 cents/lb. 

Oct 26 Cotton  closed at 75.15, up 112 points,

Dec 26 Cotton  closed at 78.88, up 112 points,

Mar 27 Cotton  closed at 81.54, up 93 points

On the date of publication, Austin Schroeder 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.