Market Movement Overview
Finishing on a high note, nearby cotton futures displayed resilience by closing the last trade day of the week between 24 to 46 points in the black. Even though May futures faced a setback by ending the week with a net 134 point loss, Dec cotton managed to secure a net gain of 69 points.
Key Insights
According to CFTC’s report for the week ending 3/12, cotton traders were seen liquidating long positions, resulting in a decrease of 3.2k contracts to 93,160 net long positions. On the other hand, commercial cotton hedgers reduced their net short positions by 1,517 contracts to 132,529.
Market Indicators
The latest USDA’s Cotton Market Review disclosed the sale of 11,320 bales at an average price of 89.25 cents/lb. Moreover, the Cotlook A Index for 3/14 dipped by 40 points to 99.80 cents/lb. Additionally, the AWP fell by 68 points from the previous week to 76.10 cents/lb. ICE certified stocks also saw an increase, adding another 1,100 bales to reach 27,765 bales as of 3/13.
Price Update
May 24 Cotton closed at 93.94, up 46 points,
Jul 24 Cotton closed at 93.59, up 33 points,
Dec 24 Cotton closed at 83.68, up 25 points
On the publication date, Alan Brugler had no direct or indirect positions in any securities mentioned in this article. The information provided is for informational purposes only. For additional details, refer to the Barchart Disclosure Policy.
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