Alan Brugler – Barchart
Mon Mar 20,
Nearby cotton futures pressed the downside on Monday, but were off their early session lows. May cotton saw a 281 point range from -176 to +105. The other front months ended the day 35 to 74 points lower. Stock market futures (SPY) bounced and the dollar ($DXY) weakened on Monday, however the bank liquidity issues heightened concerns about a recession in 2023 – and the corresponding implied loss of textile consumption.
The 3/17 Cotlook A Index was 93.55 cents/lb, UNCH from the prior quote. USDA’s weekly Cotton Market Review showed the 9,240 bales sold this week averaged 77.44 cents/lb. That brought the total spot sales to 486k bales, compared to 1.49 million at this point last year. The week’s AWP for cotton is 68.58 cents/lb. ICE certified stocks were 1,661 bales as of 3/17.
May 23 Cotton closed at 77.22, down 61 points, Jul 23 Cotton closed at 77.7, down 74 points, Dec 23 Cotton closed at 78.81, down 70 points. (Source: Barchart.com)