We have said in this space several times since the New Year began that we thought the time was not right to price new crop cotton and that we expected to see a pre-planting rally. Although Dec cotton trading near 62.00 – 63.00 is hardly exciting, the manner in which it (and the nearby July contract) ascended this week was impressive with July and Dec picking up 307 and 331 point gains on the week.
For this week…
The July contract gave up 32 points on Fri, settling at 63.69 – a 367 point gain on the week. The settlement was within the upper one quarter of the trading range. The Dec contract lost 18 points, settling at 62.52, the net effect leaving the July – Dec spread weakened at 117. Still Dec was a weekly winner, finishing 331 points higher for the period. Volume slowed for July delivery at nearly 20K contracts while July OI was near unchanged at approximately 112K contracts.
For Mon…
We have said in this space several times since the New Year began that we thought the time was not right to price new crop cotton and that we expected to see a pre-planting rally. Although Dec cotton trading near 62.00 – 63.00 is hardly exciting, the manner in which it (and the nearby July contract) ascended this week was impressive with July and Dec picking up 307 and 331 point gains on the week.
For this week…
