Cotton Rallying Back to Start Monday Trade

Austin Schroeder Barchart Mon Apr 7, 7:43AM CDT
Cotton on dry branch by Marianne Krohn via Unsplash

Cotton price action is up 93 to 160 points across most nearby contracts on Monday morning. Futures posted Friday losses of 115 to 144 points in the nearbys, with May down 354 points last week. Crude oil futures were $4.63/barrel lower, as the US dollar index was back up $0.821 on the day.

Outside of China’s retaliatory tariff of 34% on all US goods there were no major new announcements over the weekend.

Friday’s CFTC Commitment of Traders report showed managed money cutting back 7,176 contracts to their net short in cotton futures and options as of April 1. They held a net short of 66,634 contracts by Tuesday. 

The Cotlook A Index was back down 50 points on April 3 at 79.60 cents/lb. ICE cotton stocks were unchanged on 4/2, with the current level of certified stocks at 14,488 bales. USDA’s Adjusted World Price (AWP) was back up 158 points on Thursday afternoon to 55.22 cents/lb.

May 25 Cotton  closed at 63.36, down 144 points, currently up 164 points

Jul 25 Cotton  closed at 64.56, down 115 points, currently up 129 points

Dec 25 Cotton  closed at 66.16, down 139 points, currently up 119 points


On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.