Extended Downside for Cotton Market
On Monday, cotton futures in close proximity continued to decline but were still off their lows for the session. Cotton prices in May ranged 281 points from -176 to +105. The day’s trading saw decreases of 35 to 74 points for the other front months. On Monday, the dollar ($DXY) declined and stock market futures (SPY) rose; however, worries about a recession in 2023 and the resulting implied decline in textile consumption increased due to bank liquidity problems.
The Cotlook A Index on March 17 was 93.55 cents/lb, UNCH from the earlier estimate. The 9,240 bales sold this week averaged 77.44 cents/lb, according to the USDA’s weekly Cotton Market Review. That brought the total spot sales to 486k bales, compared to 1.49 million at this point last year. The cotton AWP for the week is 68.58 cents/lb. As of March 17, there were 1,661 bales of ICE-certified stocks.
Reference: www.barchart.com
