The cotton market closed within earshot of February’s contract high Thursday, as positive numbers from the June WASDE and a suffering weather outlook were the bullish drivers.
In its crop report, USDA whacked beginning stocks (3.15 mb), increased exports (14.80mb), thereby lowering ending stocks (2.90 mb). In addition, government tabulators cut global carryout some 1.70 mb from the previous 90.00 mb to 89.30 mb. Chinese usage jumped 1 million bales, while Turkey’s consumption increased 200,000 bales.
Then, unfortunately, there is this adverse and unrelenting weather. Right now, a system is pounding the U.S. Delta. Locations there are reporting double-digit rain amounts just this week, causing widespread field and crop damage. Also, “something” may be building in the Caribbean, which could run up into Louisiana potentially causing further chaos.
As a reminder, all July options will expire Friday at the settlement. Afterwards, on June 24, the spot contract will enter its delivery.
Heading into the Friday session, December cotton is up 2.24 cents on the week, plus 4.80 cents on the month and up 13.25 cents on the year.
Thursday, July cotton closed at 87.36 cents, up 0.74 cent, December settled 88.21 cents, up 0.87 cent and March 2022 ended at 88.07 cents, 0.85 cent higher; volume was 54,477 contracts.