Cotton Futures Slip 174 Points on Friday

Cotton futures slipped 174 points on Friday, a 9% decline that left the July contract down 577 points for the week and the December contract trailing by 329 points.

Crude‑oil prices fell 1.4 USD/barrel to $70.52, while the U.S. dollar index slipped 0.043 points to 101.150.

NOAA’s 7‑day QPF projects limited rainfall for Texas over the next week, with a Gulf‑Coast risk area extending into Georgia bringing only modest totals. The 8‑14‑day outlook indicates a slightly above‑normal chance of precipitation.

The annual June acreage report is due on Tuesday; Bloomberg‑surveyed traders in the market forecast 9.6 million acres planted this spring.

Managed‑money institutions increased their net long position in cotton futures and options by 3,309 contracts through the week ending 23 June, bringing the total net long to 38,445 contracts.

The Seam reported sales of 569 bales at 68.44 cents/lb on Thursday. The Cotlook A Index fell 250 points to 85.05 cents/lb. ICE certified cotton stocks dropped 2,197 bales on Wednesday, leaving certified stocks at 187,250 bales. The adjusted world price rose 151 points on Thursday afternoon, reaching 63.88 cents/lb.

Closing prices:

• July 26 Cotton – 71.66 cents (–174 pts)

• December 26 Cotton – 76.38 cents (–59 pts)

• March 27 Cotton – 77.74 cents (–55 pts)

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