Cotton price action is up 10 to 15 points so far on Wednesday. Futures saw stronger trading on Tuesday, with contracts closing 40 to 45 points higher. Crude oil futures rose 46 cents a barrel to $58.47. The US Dollar Index fell again by $0.364 to $97.590. The markets will be closed on Thursday for Christmas, with an early closing on Tuesday.
Tuesday’s export sales update report showed RB304,689 of cotton sold in the week of December 11, a high for the marketing year and the highest since February. Shipments improved to RB134,371, a five-week high.
The CFTC’s updated Trader Engagement Report showed a total of just 180 contracts added to net short managed money in cotton futures and options in the week of 12/16 to a net short of 54,833 contracts.
The Seam’s 12/22 online auction showed sales of 12,794 bales at an average price of 59.15 cents/pound. The Cotlook A index rose 40 points on December 22 to 73.70 cents. Stocks of ICE-certified cotton decreased by 796 bales through decertification on Monday, with a certified stock level of 11,600 bales. The Adjusted World Price was updated last Thursday to 49.99 cents/lb, a drop of 40 points from the previous week.
March 26 Cotton closed at 64.01, up 40 points, currently up 15 points.
May 26 Cotton closed at 65.2, up 42 points, currently up 12 points.
July 26 Cotton closed at 66.27, up 42 points and currently up 14 points.
As of the date of publication, Austin Schroeder had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com