No Sugar Coating: Bearish Tones Return to Cotton Market
Apr 14, 2024
Thoughts that cotton had been knocked out last week were premature, as the spot May contract and other prices across the board fell in unison – including the especially important new crop December contract.
Market Movement from 08th Apr 2024 to 13th Apr 2024.
• There is a noticeable trend in NY cotton future market: many speculators are liquidating their long positions, driven by fear of delivery. Over the past three weeks, there's been a free fall in the market. In NY future, July is the leading month now. The increase in volume coupled with the decrease in open interest indicates that speculators are indeed liquidating their long positions. The anticipated tensions between Iran and Israel are exacerbating the situation.
Cotton futures continued to fall during a busy, data-driven week.
• May futures settled at 83.37 cents per pound, finishing 377 points lower for the week.
• With May First Notice Day less than two weeks away, the July contract will start to take focus. July futures settled at 85.25 cents per pound, finishing 332 points lower for the week.
COTTON: The U.S. 2023/24 cotton supply and demand projections are unchanged this month, with ending stocks forecast at 2.5 million bales or 18 percent of total disappearance. The marketing year price received by upland cotton producers is projected to average 76 cents per pound, a decrease of 1 cent from last month.