![Tyson Foods Plant [Photo: Food Manufacturing]](https://southarkansassun.com/wp-content/uploads/2023/08/iStock_1185520857__1_.5e441daa51cca-600x337.jpg)
![Silverado Senior Living Management Inc. [Photo: Los Angeles Times]](https://southarkansassun.com/wp-content/uploads/2023/10/download-6-4-600x337.jpg)
![China's Wuhan Institute of Virology [Photo: Nature]](https://southarkansassun.com/wp-content/uploads/2023/09/d41586-021-01529-3_19239608-600x337.jpg)
The recent trajectory of the cotton market review has witnessed a downturn, marking the conclusion of the trading week with notable triple-digit losses.
Analyzing the recently released weekly report or the cotton market review from the Commodity Futures Trading Commission (CFTC), it was revealed that managed money saw a decline of 4.4 thousand contracts in their net long positions. (Photo: Iran Yarn)
Cotton Market Review Shows Prices Fluctuate
The cotton market review wrapped up the last session of the week with gains ranging between 31 and 200 points on Friday, a published article reported. Consequently, the December contract (Dec) managed to secure a 360-point increase over the course of the week, with prices surging to levels that had last been observed in August of the preceding year.
The United States Department of Agriculture (USDA) also adjusted the cash price by an upward margin of 3 cents, resulting in a valuation of 79 cents per pound. This development further contributed to the evolving landscape of the cotton market.
Analyzing the recently released weekly report or the cotton market review from the Commodity Futures Trading Commission (CFTC), it was revealed that managed money saw a decline of 4.4 thousand contracts in their net long positions. This contrasted with the situation in the previous week, where net new selling activity had occurred.
On the other hand, the commercials displayed a proactive approach by reducing their net short positions by a volume of 4.5 thousand contracts. This strategic move was accompanied by the establishment of new long hedges, ultimately setting the net short positions at 88,659 contracts as of August 8th.
READ ALSO: Trump’s Crypto Currency Wallet Allegedly Holds $2.8 Million Following NFT Collection Debut in 2022
Cotton Market Review
Turning our attention to the USDA’s weekly Cotton Market Review, an aggregate of 3,956 bales were successfully traded. The trading occurred at an average gross price of 80.96 cents per pound.
In terms of external indices, the Cotlook A Index displayed a value of 95.90 cents on August 9th, experiencing a decrease of 15 points. The updated Adjusted World Price (AWP) for cotton currently stands at 70.25 cents per pound, showing a marginal increment from the previous week’s value of 70.19 cents. The monitored inventory of ICE Certified Stocks, as of August 9th, equates to 380 bales.
In assessing the market’s performance through specific contracts, the December 2023 Cotton contract reached a closing point of 87.89, reflecting a notable increase of 174 points. However, the current state of affairs has marked a downturn of 254 points from the closing figure.
The March 2024 Cotton contract followed a similar trajectory, achieving a closing position of 87.67 points, thus securing a gain of 152 points. Presently, this contract registers a decline of 239 points from its previous closing figure. Lastly, the May 2024 Cotton contract concluded its trading session with a closing value of 87.54, reflecting a positive movement of 130 points. In the current context, this contract showcases a drop of 229 points from its closing value.
In summary, the cotton market review showed that the cotton market had entered a new week with substantial losses, accentuating the intricacies of supply and demand dynamics, futures trading, and external indices that shape its multifaceted landscape.
READ ALSO: Hastings City is Proposing An Increase in Property Tax Revenue, Declines Property Tax Levy Rate Hike
