• BEST FIVE-DAY GAIN IN THE LIFE OF THE DECEMBER ’22 CONTRACT • CPI DATA BIG NEWS IN THE MARKETS • FIRST FOUR DAYS OF NEW MARKETING YEAR NET 102,400 BALES
Cotton futures made a fairly steady march higher, with their largest gain on Thursday when December futures rallied to limit up mid-day. The consistent movement higher left last Friday’s low of 94.22 cents per pound as the week’s low and Thursday’s high at 104.94 cents as the week’s high.
COTTON MARKET POSTS LARGE WEEKLY GAIN, SMALL MONTHLY SETBACK
Jul 31, 2022
Dec cotton gained 585 points on the week, finishing at 96.74, with the Dec – Mar inversion contracting to 323. Dec posted at 210-point setback for July. Last weekend, our proprietary models predicted a finish on the week that was to be near unchanged to higher Vs the previous week’s settlement, which proved to be correct.
Market Moves Higher with Little Economic Data July 25, 2022
Over the past few weeks, the market resembles a rusty old truck trying to climb a rainy dirt road. Each time it seems to gather traction, it slips and slides further down the hill. That is until last week when it posted its first positive performance in six weeks.
Cotton prices blew through the 93-cent price resistance as suggested, albeit much sooner than I expected. Keep thinking patience as prices now look to trade the dollar mark. Beyond that, marketing fundamentals, particularly on the supply side of the price equation, are building an argument for trading to the 108-110-cent level.