Cotton Leaking Lower on Monday Morning
Cotton price action is trading with 5 to 20 point losses early on Monday morning. Futures posted 16 to 26 point gains across most contracts on Friday, as July was up 56 points last week. Crude oil prices were up $1.43/barrel, closing in on $65, with the US dollar index back up $0.466 to $99.170.
The managed money crowd in cotton futures and options added 3,386 contracts to their large net short position of 46,605 contracts as of Tuesday June 3rd.
USDA’s Export Sales data now has upland cotton sales at 11.525 million RB as of May 29, which is down 7% from last year, but still 111% of the USDA export forecast. That compares to the 112% 5-year average pace for the current week. Shipments have totaled 9.314 million RB, up 2% yr/yr and 90% of USDA’s expected number (vs. 81% on average).
Thursday’s auction from The Seam showed 1,660 bales sold at an average price of 66.20 cents/lb. The Cotlook A Index was down 75 points on 6/5 at 77.50. ICE cotton stocks were down 1,561 bales on June 5 via decertification, with a certified stocks level of 52,139 bales. USDA’s Adjusted World Price (AWP) was back down 8 points last week at 53.76 cents/lb.
Jul 25 Cotton closed at 65.62, up 26 points, currently down 5 points
Oct 25 Cotton closed at 67.44, up 16 points, currently up 7 points
Dec 25 Cotton closed at 68.21, up 23 points, currently down 19 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.