September’s cotton trade began the new month with limit losses through the July ’23 contract. Expanded limits will be 6 cents for the week’s end tomorrow. That selloff erased the chart gap created coming out of the bullish August WASDE report.
Recession talk continues to bubble in the stock market, and retailers are discounting surplus inventory. The stock market did rally late in the day and closed higher. The shrunken 2022 US crop is the counter argument supporting cotton.
USDA reported July’s cotton consumption was 607 RBs. That was 52 RBs lighter than June and was down from 1,215 in July ’21. Cotton stocks were up 55 RBs to 4,106 and remain nearly double last year’s level.
The 8/30 Cotlook A Index (old crop) was back down by 465 points to 130.6 cents per pound. USDA’s FSA raised the AWP for cotton by 38 points to $1.04 86/100 per pound.
Oct 22 Cotton closed at 113.29, down 500 points,
Dec 22 Cotton closed at 108.21, down 500 points,
Mar 23 Cotton closed at 105.14, down 500 points
Πηγή: barchart.com