Cotton Market Lower As Money Chases Equities

Cotton futures closed 89 to 247 points lower. The stock market was higher for the 5th day in a row on expectations for a Fed rate cut. The equity rally is sucking hot money away from commodities, even though stronger equities typically suggest better demand for retail goods. 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. The Commitment of Traders report showed that the large spec funds reduced their net short in cotton by 7,399 contracts in the week ending June 4. That put them net short -27,805 contracts.

JUL 19 Cotton closed at 66.12, down 247 points,

OCT 19 Cotton closed at 65.8, down 161 points

DEC 19 Cotton closed at 65.7, down 97 points

MAR 20 Cotton closed at 66.34, down 89 points

--provided by Brugler Marketing & Management

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