Cotton Prices Fluctuate during the Week
Heading into the weekend, cotton prices are exhibiting a hint of volatility, with March showing a modest increase of 91 points. Interestingly, March currently holds a mere 409 contracts of open interest, a figure that adds intrigue to the market dynamics. Conversely, new crop futures are experiencing a downturn, with a decline of less than 30 points.
CFTC Report Highlights Call Sales
The latest CFTC report, dated 2/16, sheds light on call sales in the cotton market. Data reveals unfixed call sales totaling 70,070 contracts, showcasing a slight decrease from the previous week. The Cotton On-Call report mentions a significant shift of 6,470 contracts rolling out to March, with May and July contracts now standing at 23,395 and 22,528, respectively. In contrast, unfixed call purchases saw a decrease of 3,076 contracts from the previous week, with a notable concentration in the December contract, amounting to 31,406 contracts.
USDA Export Sales and Shipments
USDA’s latest report on cotton export sales for the week ending 2/15 indicates 130.5k RBs, a decline from the previous week and marking a 9-week low for new business. Shipments stood at 255.5k RBs, bringing the season’s total exports to 5.07m RBs, while total commitments reached 10.4m RBs. Notably, USDA also reported sales of 255k RBs for the new crop.
The Cotlook A Index reflects a weakening trend, dropping by 230 points to 99.30 cents/lb. Additionally, the updated AWP is noted at 73.44, showing a surge of 340 points for the week. ICE certified stocks are relatively low at 997 bales as of 2/21.
Current Market Standings
Mar 24 Cotton is trading at 95.11, marking an increase of 91 points.
May 24 Cotton is priced at 93.41, reflecting a decrease of 105 points.
Jul 24 Cotton is currently at 92.52, down 110 points from previous levels.
Alan Brugler, the author of this article, maintains no positions in the securities discussed. The information presented here is purely for informative purposes. Refer to the Barchart Disclosure Policy for additional details.
The opinions expressed in this piece are solely those of the author and do not necessarily align with those of Nasdaq, Inc.
