Cotton Stays Strong on Tuesday
Cotton futures spent some time in the red early on Tuesday, but firmed up and pushed the upside through most of the day session. Futures ended the day a net 11 to 50 points higher, with March just 29 points under the daily high. The Mar-Dec cotton spread ended the Tuesday session with a 527 point spot premium. The US Dollar Index was up sharply on Monday, but backed off with a 251 point decline on Tuesday.
The Chinese cotton market on the Zhengzhou commodity exchange will be closed from Feb 12th through Feb 15th for the Lunar New Year.
The Cotlook A Index was up by another 60 points to 95.85 cents. USDA’s weekly Cotton Market Review had 30,988 bales sold for the week with an average price of 81.35 cents/lb. The AWP is 67.64 cents. ICE certified stocks were only 999 bales as of 1/26, with the March contract delivery period just a few weeks away.
Mar 24 Cotton closed at 87.54, up 50 points,
May 24 Cotton closed at 88.4, up 37 points,
Jul 24 Cotton closed at 88.87, up 35 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.