Cotton Slipping Lower on Tuesday AM

Cotton on branches by Marina Fedorova via iStock

Cotton prices are down 16 to 25 points this morning. Futures ended the Monday session with contracts up 1 to 10 points. Hurricane Beryl made landfall on Monday morning and had been expected to bring along precip amounts of up to 8” in parts of TX before the remnants move north toward MO and IL. Preliminary totals ran 6-10 inches for areas under the storm track, and 10 to 14” in the Houston metro area. At least 7 deaths were reported.

The NASS Crop Progress report indicated 52% of the US cotton crop was squared, 2% above the average, with 19% setting bolls, up 4% from normal. Condition ratings dropped 5% to 45% gd/ex, as the Brugler500 index fell 11 points to 320.

Per CFTC, the managed money Spec funds were trimming their net long by 5,866 contracts in the week of July 2, taking it to 30,872 contracts.

ICE certified cotton stocks were left alone on July 5 at 53,790 bales. The Cotlook A Index was down unchanged on July 5 at 82.75 cents/lb. The USDA Average World Price (AWP) was cut by 43 points last week to 57.80 cents/lb on Friday morning. It is effective through this Thursday.

Jul 24 Cotton  closed at 67.32, up 1 point, currently unch

Dec 24 Cotton  closed at 71.05, up 7 points, currently down 24 points

Mar 25 Cotton  closed at 72.84, up 13 points, currently down 25 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.