Cotton Down As Equities Rally Draws Spec Capital

Cotton futures are trading 120 to 280 lower this morning. The stock market is rallying for the 5th day in a row on the expectation of cheap money from the Fed. The rally is sucking hot money away from commodities, even though stronger equities typically suggest better demand for retail goods. Monthly trade data from Census showed 1.759 million bales exported during April. That is the third largest April total on record but well behind last year’s record. The Cotlook A index for June 5 was down 25 points from the previous day to 79.60 cents/lb. The Forward A was 50 points lower at 76.85. The weekly Average World Price (AWP) from USDA is now 61.51 cents/lb through next Thursday, up 20 points from the previous week.

Jul 19 Cotton is at 65.68, down 291 points,

Oct 19 Cotton is at 65.8, down 161 points

Dec 19 Cotton is at 65.37, down 130 points

--provided by Brugler Marketing & Management

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

Did you know Brugler Marketing & Management has more to offer to you than just this free daily commentary?! Producers just like you rely on our custom research and daily guidance on when and how to market their commodities. Click here to learn more about what we have to offer, or call 402-697-3623. Do it today!

Do you want to know what trades Alan Brugler recommends? Subscribe to Ag Market Professional, and become part of the Brugler client group! Not sure? Ask for a FREE SAMPLE and get two FREE GIFTS! Start here

Want this Ag News delivered to your inbox? Get the FREE Brugler Ag Newsletter, delivered 3 times daily.