A Red Day for Cotton
Sunlight breaking through the clouds revealed a disappointing landscape for cotton traders today. Looking at the board, we find cotton prices dipping between 7 to 30 points on this Friday. The once hopeful May numbers have taken a bruising fall, down by over 2 cents for the entire week.
Export Sales and Commitments
Reflecting on the week that ended on 3/14, Export Sales data presented a mixed bag of 92,620 RBs of old crop cotton and 40.5k RBs of new crop sales. These numbers bring old crop commitments to 10.71 million RBs, showing a 4% dip compared to last year. New crop commitments are at 99.5k RBs, struggling 27% behind last year’s pace.
Market Index and Certifications
Measuring the pulse of the market, the Cotlook A Index for 3/21 reported a significant drop of 85 points, settling at a flat 97 cents. Additionally, the AWP saw a revision of 360 points lower to 72.50 cents per pound, impacting farm program activities through the coming Thursday. ICE certified stocks stood at 41,756 bales as of 3/20, further engraving the challenges faced in the cotton market.
May 24 Cotton is standing at 91.91, witnessing a 30-point decline. Jul 24 Cotton is hanging at 92.16, showing a 10-point drop. Lastly, Dec 24 Cotton stands at 83.84, down by 8 points, painting a somber picture for investors and traders alike.
On the date of publication, Alan Brugler held no positions in any of the securities mentioned herein, be it directly or indirectly. The information and data shared are purely for informative purposes. To delve deeper, one can refer to the comprehensive Barchart Disclosure Policy.
These insights, though fascinating, reflect the personal views of the author and may not entirely align with those of Nasdaq, Inc.
