Cotton Higher on Support from Trade Talks

Cotton futures Closed 167 to 258 points higher in the nearby contracts on Friday. Optimism from this week’s trade talk sessions gave cotton a boost. The CFTC reported earlier that as of Tuesday, managed money had been at a net short position for cotton futures to the tune of 19,306 contracts. Managed money had reduced their net short position by 5,489 contracts from a week ago. Outside of the production reduction on Thursday (6 lb drop to yield at 833 lbs/ac), USDA left the demand side unch for the US balance sheet. Through October 3, exports of upland cotton have totaled 1.905 million RB, 12% of USDA’s projection and ahead of the 11% average pace. Total commitments are 58% of that projection and 7% faster than normal. The Cotlook A Index was down 50 points to 71.75 cents/lb for October 9. The AWP is was updated to 53.90 cents/lb on Thursday, up 54 points from last week.

DEC 19 Cotton is at 64, up 258 points,

MAR 19 Cotton is at 64.52, up 244 points

MAY 20 Cotton is at 64.81, up 208 points

JUL 20 Cotton is at 64.95, up 167 points

-- provided by Brugler Marketing & Management

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