Cotton Adding to Downside

Midday cotton prices are down another triple digits following the broad selloff yesterday. Old crop July contracts are the weakest so far with a 205-point drop, tightening the old to new crop spread to 138 points. 

NOAA’s updated 7-day QPF shows cotton area in N.E. TX and OK may get 2” accumulated rainfall or more. Most of the Gulf and S.E. coastal cotton area is forecasted to remain drier. 

The online cotton trading platform, The Seam, reported 3,280 bales sold on 5/12 for an average price of 73.17 cents/lb. USDA’s Daily Spot Quotations report from 5/13 showed 3,335 bales were sold at spot. The 5/12 Cotlook A index was 93.40 cents/lb, which is back up by 50 points. FSA’s Adjusted World Price for cotton is 72.91 cents/lb, up from 71.39 LW.  

Jul 21 Cotton  is at 82.85, down 205 points

Dec 21 Cotton  is at 81.91, down 139 points,

Mar 22 Cotton  is at 81.71, up 63 points

Market Commentary provided by:

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