Cotton Pulls Back Triple Digits

Cotton futures are sharply lower at midday with losses of as much as 331 points at midday. May futures still had 66 delivery notices issued, and preliminary OI data suggests just 5 contracts remain open through 4/28.  

The weekly Export Sales data release showed 77,060 RBs of cotton was sold during the week ending 4/22. That was down 25% from last week, but well above the 15k RBs booked during the same week last season. USDA showed another 341,909 RBs were shipped through the week, marking the 9th consecutive +300k RB week. That brought the season’s accumulated shipments to 10.983m RBs, which remains at record pace and 12% above last season’s pace.

New crop cotton bookings were 16,255 RBs bringing 2021/22’s forward book to 1.673m RBs. That is the lowest forward book for this time since 1.153m ahead of the 16/17 season.

USDA’s 4/28 DSQ report showed 1,090 bales were sold at spot, bringing the MYTD spot sales to 1.3489 million. The Cotlook A index was another 180 points higher to 96.90 cents/lb on 4/28. The AWP for cotton is 70.49 cents/lb and will be updated after the close.    

May 21 Cotton  is at 87.56, down 118 points,

Jul 21 Cotton  is at 86.21, down 331 points,

Dec 21 Cotton  is at 83.6, down 247 points

Market Commentary provided by:

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