Thursday Tumult: Cotton Market Holds Steady
As Thursday unfolds, the cotton market finds itself dancing tantalizingly close to the unchanged mark. May futures are tracing a bold path, covering a 169-point range from -37 to +132 points.
Export Sales Buzz: Old Crop Cotton Dominates
Recent Export Sales data, covering the week that ended on 3/14, revealed intriguing insights. Old crop cotton saw 92,620 RBs finding new homes, while new crop cotton recorded sales of 40.5k RBs during the same period. This development nudged old crop commitments to 10.71m RBs, showing a slight 4% lag from last year’s pace. In contrast, new crop commitments languished at 99.5k RBs, a significant 27% fall behind last year’s sprint.
Market Metrics and Realities
The Cotlook A Index took a modest dip of 5 points, settling at 98.40 cents/lb. Venturing into USDA’s weekly Cotton Market Review, we learned that 11,320 bales exchanged hands at a respectable average price of 89.25 cents/lb. Meanwhile, the AWP currently stands at 76.10 cents/lb for the week, with an impending update waiting in the wings. ICE certified stocks saw an uptick, crawling up by 1,100 bales to touch 27,765 as of 3/13.
May 24 Cotton is at 91.95, down 23 points,
Jul 24 Cotton is at 91.97, down 15 points,
Dec 24 Cotton is at 83.82, up 2 points
On the date of publication, Alan Brugler had no financial interest in the mentioned securities, directly or indirectly. The content presented here is purely for informational purposes. For a comprehensive understanding, please refer to the Barchart Disclosure Policy.
Opinions articulated in this article are the author’s own and do not necessarily mirror the stance of Nasdaq, Inc.
