Cotton Rally Holding at Midday
Cotton futures are showing 150 to 185 point gains so far on Monday at midday. Crude oil futures are 96 cents/barrel lower, as the US dollar index is back up $0.332 on the day.
President Trump has responded to the Chinese retaliatory 34% tariff with an additional 50% on Chinese goods if they don’t take back the issued 34%. He gave them a deadline of Tuesday, April 9 to withdraw the tariffs.
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 290 points on Friday at 76.70 cents/lb. ICE cotton stocks were unchanged on 4/4, with the current level of certified stocks at 14,488 bales. USDA’s Adjusted World Price (AWP) was back up 158 points last week to 55.22 cents/lb.
May 25 Cotton is at 65.21, up 185 points,
Jul 25 Cotton is at 66.16, up 160 points,
Dec 25 Cotton is at 67.68, up 152 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.