Cotton Showing Slight Gains on Friday Morning

Cotton - trisha-downing-pyud8ZaVq4I-unsplash

The cotton market is trading higher to round out the week, with gains of 13 to 63 points this morning. Futures posted 7 to 113 point losses on Thursday. The death spiral liquidation continues for May, down 146 points, as longs get out before deliveries, with rest of the contracts following along. Crude oil futures had a wild night, down 83 cents this morning and $4.14 off the overnight highs after reports of several presumed Israeli strikes in Iran in response to the Iranian attack over the weekend on Israel. Iran reportedly downplayed the attacks, indicating there would be no retaliation in response, likely sending crude back lower.

Export Sales data saw some improvement, with old crop sales at 146,112 RB, a 9-week high as the recent drop in prices have incentivized buying. Much of that was to China, with 92,600 RB in sales. New Crop sales were 80,077 RB, the highest in 5 weeks. Shipments were not as good, with 266,732 RB exported, an 8-week low.

Thursday afternoon’s Cotton on-Call report showed 6,900 contracts of unfixed call sales for May, down 3,672 on the week. July was up 5,426 contracts to 28,421 contracts. Overall, on the week unfixed call sales were up 2,828 contracts to 70,843 contracts. The unfixed call purchases are large for December at 40,708 contracts. 

ICE certified cotton stocks were up another 1,032 bales on April 17 at 172,732 bales. The Cotlook A Index was back down 65 points to 88.95 cents/lb on April 16. The AWP dropped another 325 points to 62.18 today and is good through next Thursday.

May 24 Cotton  closed at 78.1, down 146 points, currently up 63 points

Jul 24 Cotton  closed at 80.61, down 72 points, currently up 54 points

Dec 24 Cotton  closed at 77.41, down 113 points, currently up 37 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.