Market Movement from 19th Oct 2020 to 24th Oct 2020
• ICE cotton futures were down by 64 to 75 points on Friday, but ICE Dec contract gained 137 points during the week. From Friday to Friday, the Dec to March carry fell 9% to 0.58 cents (0.08%). With some profit taking on Friday market gave up some gain but still maintained weekly green closing. This was consecutive third week of upswing. Bull run was started and dominated by China’s ZCE futures.
DECEMBER FUTURES RALLY, WEATHER REMAINS A CENTRAL CONCERN
• December Futures Extend Previous Week’s Winning Streak • Stimulus Talks Rattle Investors • U.S. Export Sales and Shipments on Target to Hit USDA 2020/21 Forecast • Cotton Belt Harvest Behind Average Five-Year Pace
Cotton prices (nearby December futures) have now trekked into territory that no one thought possible a few months ago. Not now, not this soon.
December futures now approaches 72 cents and has thus far gained 2.02 cents for the week, 6.15 cents for the month of October, and 21.53 cents since the horrible low back on April 1. Talk is now already circulating of 80 cents.
Cotton prices continue to ride the uptrend and have now surpassed the initial price goal I earlier established. Yet, the uptrend remains in play and prices are only in the middle of the current trading channel.
The cotton market closed lower Friday after a pretty much stellar week. Coming into Friday morning, December cotton was up 1.50 cents on the week and 6.00 cents on the month, so it was primed for some traders to take money off the table. Speculators have been net long a hefty position for some time, to which they seemingly augment each week. The next update to see how they stand will be Friday afternoon’s CFTC’s Commitment of Traders positions.