We entered last week expecting a great deal of market volatility as a host of fundamental and macroeconomic reports were scheduled for release. So it was, after advancing over 200 points ahead of the September WASDE it fell prey to the old buy the rumor, sell the fact idiom. Thus, giving back nearly all these gains to close Friday at 86.44, for a paltry gain of 53 points on the week.
Market Movement from 11th Sep 2023 to 16th Sep 2023.
• NY Dec cotton futures saw a weekly gain, rising from 85.91 cents on September 8th to 86.44 cents on September 15th, marking an increase of 0.53 cents.
DECEMBER FUTURES TRADED HIGHER FOR THE MAJORITY OF THE WEEK
• Strong Economic Data Has Many Betting Another Pause in Interest Rates Will Occur • U.S. Production Cut to 13.13 million Bales • Demand for U.S. Cotton Remains Tepid • Only 29% of the Cotton Crop in the U.S. is Rated Good to Excellent
Stagnant Demand Continues to Suppress Cotton Market
Sep 15, 2023
Certificated stocks are coming to the Board. So what? Who cares?
Better care!!
It means that someone believes the best market for cotton is the futures market delivery mechanism. If delivery against futures is the best market for stocks, then it means the cash market does not want/need cotton. Of significant importance is that stocks are being moved to a privately-owned warehouse as opposed to a merchant/cooperative warehouse.