Export Sales Receive Boost as China Returns to Market October 25, 2021
There was a lot of movement in the market last week, only to end up right back where it started. After a week of ups and downs, the December contract settled at 108.26 on Friday while March 22 closed at 106.19, up two cents from its previous close but well within its 104- 113 cent trading range.
COTTON MARKET POSTS MODEST WEEKLY GAIN Oct 25, 2021
The ICE Dec cotton contract picked up 93 points last week, finishing at 108.26, with the Dec – Mar spread inversion contracting to 207. Last week our models predicted a finish on the week that was to be near unchanged to lower Vs the previous Friday’s settlement, which proved to be incorrect, although recent volatility invites a discussion of what “near unchanged” means.
After a strong Sunday night surge, the cotton market only managed to settle slightly up Monday. The market was aware of overnight Chinese buying, but also knew the global shipping crisis continues to hamper the global economy. Thus, future exports may continue to be lax. Traders also heard comments from President Xi at the UN that indirectly lambasted the United States.