Cotton Futures Extend Friday Sell Off Into Monday

Cotton futures gapped lower on Sunday night, and are still down 93 to 126 points this morning. Cotton prices were mixed but mostly lower on Friday. December was down the most, giving back 101 points, though Dec was still 6.07 cents/lb above the previous Friday settle. The other front months were within 12 points higher and 82 points red on the day.  

Managed money cotton positioning through the week that ended 10/5 left the group 96,743 contracts net long. That compared to 94,599 contracts in the CFTC report last week. At 97.55% of their OI, that was the most net long managed money has been in cotton futures and options on record (each Tuesday dating back to 6/13/2006). 

Sales on The Seam for the week through Thursday totaled 6,387 bales for a weighted average price of 105.5 cents/lb. USDA’s weekly Cotton Market Review noted 105 cents/lb as the average price for the 9,616 bales sold through the week. The Cotlook A index was 160 points stronger to 119.50 cents/lb. The AWP for cotton is now 91.81 cents/lb, up from 83.92 last week. 

Dec 21 Cotton  closed at 110.6, down 101 points, down 126 this morning

Mar 22 Cotton  closed at 107.91, down 82 points, down 93 this morning

May 22 Cotton  closed at 106.77, down 50 points, down 103 this morning  

Market Commentary provided by:

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