Cotton prices were range-bound this week with little or no fresh fundamental news to provide any direction. Meanwhile, weekly U.S. export sales and shipments continue to be lackluster with divergent price ideas among buyers and sellers.
Friday, Oct. 23
The cotton marketing week began with cotton futures posting modest gains at the Intercontinental Exchange (ICE) in New York. The session began with December cotton higher but trading on either side of unchanged for a few hours; however, the contract found some footing and settled 24 points higher at 62.76 cents per pound after trading in a 65 point range. March cotton seemed to follow suit, settling 23 points higher at 62.60 cents.
Monday, Oct. 26
The market moved lower Monday, more than erasing Friday’s gains as traders suspected spec long liquidation led the way downward. Once it turned lower, December cotton remained on negative ground for the remainder of the session. The contract traded as low as 61.91 cents, its lowest in two weeks, before settling at 62.13 cents, down 63 points. March cotton traded in a range of 61.75 to 62.60 cents and settled at 61.93, down 67 points.
In other news Monday, USDA reported the U.S. cotton crop was 42 percent harvested, up from 31 percent the previous week and compared to the five-year average of 43 percent. The department reported 37 percent of the Texas crop had been harvested, up from 17 percent the previous week.
Tuesday, Oct. 27
The market began a two-day rally Tuesday at ICE as December opened higher and traded as high as 63.18 cents per pound. Some light selling pressure then emerged, but December stayed on positive ground for the rest of the session, settling 21 points higher at 62.34 cents. March cotton again followed December’s lead, settling 23 points higher at 62.16 cents per pound.
Wednesday, Oct. 28
Cotton futures again traded in a relatively narrow range Wednesday, moving on either side of unchanged. Eventually, buyers helped bring December back to positive ground after the contract traded as low as 62.20 cents. The contract settled at 62.67 cents, up 33 points. March traded in a 74 point range and settled 30 points higher at 62.46 cents per pound.
Thursday, Oct. 29
The beginning of the index roll period seemed to pressure cotton futures as funds started moving their positions from the December contract to the March contract. December opened lower and stayed there for most of Thursday’s ICE session as it traded in a 76 point range. It settled at 62.32 cents, down 35 points. March cotton settled 25 points lower at 62.21.
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