Cotton Extending Tuesday’s Bounce

Cotton Grass Flower

Cotton prices are up 23 to 90 points so far this morning. Futures posted 15 to 109 point gains on Tuesday, as futures got a bounce on a decline in US crop conditions. Outside factors were helpful, with crude oil up $1.30 and over $80/barrel.

NASS reported condition ratings slipping down 2% on the week at 54% gd/ex, as the overall score via the Brugler500 index was down 7 points to 346. Much of the worsening conditions were in the more fringe states, with AL and AR down 10 and MS 11 points lower. Texas ratings did drop 7 points, with Georgia actually improving by 1 point.

The ICE certified cotton stocks were down 920 bales on June 14 at 137,063 bales. There were 931 decerts, with just 11 new certs and 6,005 bales awaiting review. The Cotlook A Index was up 30 points on June 17 at 82.15 cents/lb. The USDA Average World Price (AWP) was down 81 points to 57.32 cents per pound last week. USDA will update the number this afternoon.  

Jul 24 Cotton  closed at 71.03, up 109 points, currently up 41 points

Dec 24 Cotton  closed at 72.76, up 99 points, currently up 36 points

Mar 25 Cotton  closed at 74.05, up 100 points, currently up 36 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.