Market Movement from 05th Jun 2023 to 10th Jun 2023.
• With a decline of nearly 200 points in July Future week-on-week and no change observed in NY December future, the inverse relationship between the two has narrowed. As the July option is set to expire and delivery notices begin on June 23rd, the open interest for July contracts has started to roll over to subsequent months.
Maybe better news…Cotton had its excitement and is likely settling down for a quiet and manageable delivery period. There seems to be a strong taker of the certificated stocks, if in fact, any are delivered. Look for the July contract to close to 150 to 200 points of December. The December contract is on its own now, meaning planting and crop development will chart the contract’s price course for the coming two months.
The cotton market was somewhat higher Friday as the June WASDE proved to be neutral, or at least, not overly bearish.
The cotton market was somewhat higher Friday as the June WASDE proved to be neutral, or at least, not overly bearish. In addition, traders were encouraged by the fact the S&P 500 posted fresh highs for the year.
COTTON: The 2023/24 U.S. cotton projections compared to last month show lower beginning stocks, but higher production, exports, and ending stocks. Projected abandonment in the Southwest has been reduced due to recent favorable rainfall, resulting in a production increase of 1.0 million bales to 16.5 million. Overall U.S. abandonment is now projected at 16 percent, which would be less than half its 2022/23 level, and close to the long run average.