Double Digit Bounce into Tuesday for Cotton

Alan Brugler Barchart Tue Feb 6, 7:24AM CST
Cotton - amber-martin-9pvTSsNV2T4-unsplash

Cotton prices are up by as much as 35 points in early Tuesday market activity. Nearby cotton faded with 7 to 18 point losses on Monday, while there were 21 to 34 point gains for new crop. The Mar-Dec spread tightened to 491 points at the close. The US Dollar Index was up sharply on Monday, following a bullish engulfing line on the charts from Friday. 

The Chinese cotton market on the Zhengzhou commodity exchange will be closed from Feb 12th through Feb 15th  for the Lunar New Year. 

The Cotlook A Index for 2/2 was 115 points higher at 95.25 cents. USDA’s weekly Cotton Market Review had 30,988 bales sold for the week with an average price of 81.35 cents/lb. The AWP is 67.64 cents. ICE certified stocks were only 999 bales as of 1/26, with the March contract delivery period just a few weeks away. 

 

Mar 24 Cotton  closed at 87.04, down 7 points, currently up 37 points

May 24 Cotton  closed at 88.03, down 12 points, currently up 24 points

Jul 24 Cotton  closed at 88.52, down 18 points, currently up 23 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.