Mixed Close for Cotton Futures

The cotton market ended the final trade day of the week with a 27 point loss in July, but 15 to 28 point gains in new crop. July fell by 201 points for the week, while December contracts were only 3 points below last Friday. USDA reduced new crop’s cash average price by a penny to 77 cents/lb. 

The CFTC reported managed money cotton traders at a 4,070 contract net long for 6/6. That was a 2,560 contract stronger net long mostly via short covering. The commercial cotton hedgers extended their net short by 10.3k contracts through the week to 59,632. 

USDA raised the old crop cotton export by 400k bales to 13 million flat. With a 100k decrease to domestic use, cotton stocks were cut by 300k to 3.2 million. That reduced new crop’s carryin, but production was raised by more than enough to offset. USDA added acres back to harvest (cut abandonment by 700k), but reduced yield by 13 lbs/acre to 841. Production is now forecasted at 16.5 million bales. As for new crop usage, exports were lifted by 500k bales to for a net 200k bale increase to 3.5 million. Global exports were upped by 900k, as China is now projected to bring in 500k bales more than in May. 

The 6/8 Cotlook A Index was 94.85 cents which was down by 40 points. The new AWP for cotton was 247 points higher to 69.38 cents. ICE Certified stocks were 15,579 bales as of 6/7.  

Jul 23 Cotton  closed at 84.04, down 27 points,

Dec 23 Cotton  closed at 81.82, up 19 points,

Mar 24 Cotton  closed at 81.61, up 15 points