Cotton Futures Pushing Higher on Tuesday


Cotton futures are rallying back on Tuesday, with contracts 68 to 123 points higher.  A 198 point stronger US Dollar Index is being shrugged off, with crude oil up 45 cents providing some outside support. 

NASS reported on Monday afternoon that 80% of the US cotton crop is planted, matching the 5 year average pace. Squaring is just a little ahead of average at 14% vs. 12%.  Condition ratings declined, however, with 56% rated good/ex vs. 61% last week.  That is still better than last year’s 49% for this date. Ratings saw an 8 point drop in TX, with GA unchanged.

Very few adjustments are expected to the US cotton balance sheet in Wednesday’s WASDE.

Warehouse cotton stocks continue to build ahead of July futures deliveries, as ICE certified cotton stocks were up 660 bales on June 10 at 133,127 bales. There were 0 decerts, with 5,002 bales awaiting review. The Cotlook A Index was back down 100 points on June 10 at 83.65 cents/lb. The USDA Average World Price (AWP) is 58.13 through Thursday.  

Jul 24 Cotton  is at 73.04, up 123 points,

Dec 24 Cotton  is at 72.58, up 99 points,

Mar 25 Cotton  is at 73.92, up 68 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.