July futures continued their descent, finishing higher in only one trading session this week.
• May First Notice Day is less than a week away, so traders are focused on the July contract. July futures settled at 80.61 cents per pound, finishing 464 points lower for the week.
Focus Shifts to Production as Cotton Prices Falter
Apr 19, 2024
The cotton market suffered through another week of mad cow disease as the new crop December contract fell to a low of 77.26 cents before recovering, settling the week at 77.55. The old crop May contract settled the week at 78.69 cents, but that contract delivery period begins next week.
Market Movement from 15th Apr 2024 to 20th Apr 2024.
• NY future is continuing its downward trend under the pressure of certified stock, exacerbated by escalating tensions between Iran and Israel, along with technical damage. Speculators are liquidating their long positions amidst these conditions.
No Sugar Coating: Bearish Tones Return to Cotton Market
Apr 14, 2024
Thoughts that cotton had been knocked out last week were premature, as the spot May contract and other prices across the board fell in unison – including the especially important new crop December contract.
Market Movement from 08th Apr 2024 to 13th Apr 2024.
• There is a noticeable trend in NY cotton future market: many speculators are liquidating their long positions, driven by fear of delivery. Over the past three weeks, there's been a free fall in the market. In NY future, July is the leading month now. The increase in volume coupled with the decrease in open interest indicates that speculators are indeed liquidating their long positions. The anticipated tensions between Iran and Israel are exacerbating the situation.