The cotton market was sharply lower Thursday, on heavy volume, as end-of-the-month profit-taking set in. Generally speaking, the market had increased some 12.00 cents over the course of the month of February, so a setback was inevitable and perhaps warranted. The fact that Thursday’s weekly export-sales were more ordinary than dynamic gave traders the necessary excuse to justify their selling. However, cotton’s down day was also influenced by speculative selling, which beset many markets Thursday.
Cotton at 2-1/2 years peak on tight market outlook
Cotton gained for a ninth straight session on Wednesday, hitting a 2-1/2-year peak on hopes that demand for the natural fibre would rise as the global economy recovers, while supplies remain limited.
Cotton contracts for May rose 0.64 cent, or 0.69% at 93.31 cents per lb, at 12:15 p.m. ET (1715 GMT). It traded within a range of 92.14 and 93.63 cents a lb, which was their highest since early June 2018.
COTTON MARKET CONTINUES HIGHER, USDA FORECASTS ACREAGE NEAR UNCHANGED IN 2021
February 21, 2021
The ICE May cotton contract gained 261 points for the week ending Feb 19, finishing at 90.48; the May – July switch was little changed at (73). Dec again finished near its weekly high, this time at 85.50. Last weekend, our proprietary model (timely results provided in our complete weekly report) predicted a finish that would be near unchanged to lower Vs the previous Friday’s settlement, which proved to be incorrect.