Cotton Posts Strength Despite Production Hike

Cotton futures closed with gains of 45 to 99 points on Friday, Futures shrugged off the production increase via the WASDE, as they accounted for the larger acreage from NASS last week. December closed the week with a 442 point gain. Crude oil was down 57 cents on the day, with the US dollar index up $0.124.

USDA’s monthly WASDE report showed no changes the old crop stocks at 4.2 million bales. New crop was raised by 400,000 bales to 4.1 million thanks to an identical increase to production to 13.7 million bales on the larger acreage data.

Friday afternoon’s Commitment of Traders report showed managed money spec funds in cotton futures and options adding 7,121 contracts to their net long in the week ending on Tuesday to 39,106 contracts.

The Cotlook A Index was down 50 points on Thursday at 89.75 cents. ICE certified cotton stocks were down 26,320 bales on July 9 via decertification, with the certified stocks level at 158,607 bales. The Adjusted World Price was back up 92 points on Thursday to 62.86 cents/lb. 

Oct 26 Cotton  closed at 79.92, up 99 points,

Dec 26 Cotton  closed at 81.54, up 91 points,

Mar 27 Cotton  closed at 82.91, up 94 points

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