Alan Brugler - Barchart
Wed Sep 28,
Midweek cotton closed the day with 40 to 87 point gains. Futures were trading lower again initially, but firmed up by midday. Ultimately, December printed a wide 3.64 cent range on the day.
The market is still trying to find a balance between limited US production and large export forward sales on the one hand and risks of reduced consumption due to a possible global recession. Mills don’t want to get stuck holding a lot of high priced yarn, but expect to average down by replacing product sold with cheaper current offerings.
USDA’s National daily Spot Quotations report had 765 bales sold in E. TX / OK, for a season total of 26,266. The Cotlook A Index dropped 4 cents on 9/26 to 110.85. USDA has the AWP for cotton as 88.88 cents/lb, through tomorrow. ICE showed 715 bales of certified cotton stocks on 9/23.