Cotton Giving Back a Limit 4c

Closeup of Cotton Plant

The May cotton contract is lock-limit lower at midday giving back 4 cents of value after Tuesday’s limit rally. May is still up by a net 208 points for the week. New crop futures are also trading in the red, though losses are less than 65 points at midday. 

NOAA’s updated 7-day QPF shows heavy rainfall from LA through GA and into KY for the coming week. The heaviest accumulation is along the Gulf Coast of AL/MS and up to 7”, though most areas can expect at least 2-3”. 

USDA’s FAS reported 39,966 RBs of cotton was sold for export. That was a new MY low. Cotton exports were 267,115 RBs for the week, bringing the season total to 5.343 million. Commitments are now 0.5% behind last year’s pace with 10.477m RBs on the books. 

The Cotlook A Index for 2/28 was 370 points higher at 105.25 cents/lb. The Seam recorded 5,791 bales sold on 2/27 for an average price of 89.1 cents/lb. The AWP was updated to 77.47 cents/lb on Thursday afternoon, a 235 point increase from the week prior. ICE certified stocks were 997 bales as of 2/21. 

May 24 Cotton  is at 95.57, down 400 points,

Jul 24 Cotton  is at 94.17, down 360 points,

Dec 24 Cotton  is at 83.19, down 62 points

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.