Cotton Futures Decline as the Weekend Approaches

Cotton futures extended their decline into Friday, closing 62 to 89 points lower on the day, with the December contract down 291 points for the week. Crude oil rose another $3.50 per barrel, while the U.S. Dollar Index edged up 0.011.

Friday afternoon’s Commitment of Traders report indicated that managed money speculators increased their net long position in cotton futures and options by 10,578 contracts during the week ending Tuesday, bringing the total to 49,684 contracts.

Export sales data released shows old‑crop cotton commitments at 11.951 million running bales as of July 9, representing 102 % of the USDA export projection and trailing recent years. Shipments to date have reached 10.398 million running bales, which is 88 % of the USDA figure and below the 93 % recorded last year at this time. New‑crop sales have climbed to 2.51 million running bales.

The Cotlook A Index rose 70 points on Thursday to 90.65 cents, while the Forward A gained 55 points to 92.35. ICE certified cotton stocks were unchanged on July 16 following decertification, holding at 98,838 bales. The Adjusted World Price was lifted by 3.52 cents on Thursday to 65.37 cents per pound.

On October 26, cotton closed at 77.07, down 62 points; on December 26, it settled at 78.63, down 67 points; and on March 27, it finished at 80.01, down 69 points.

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