Notes
What is there to say this week? The week ended up a bit higher as volume fades from July into December. By Friday, July open interest had fallen to 50,865 with open interest for December up to 114,891. Meanwhile, the July-Dec spread stubbornly remains with a cliff of over 900 points, pointing toward more future cotton and looking like the July contract may not go away quietly.
USDA raised US production by half a million bales while lowering Chinese imports to 8 million bales, all of which looks to help the bears.
Price
July ended the week at: 86.98
December ended the week at: 77.75
News
ICE Certified Cotton Stocks = 417,920
US Net Export Sales of 74,700 RB for 2014/2015 were reported.
Current World Balance Sheet (2014/2015)
Beginning Stocks: 99.0 (million 480 lb. bales)
Production: 115.9
Supply: 214.9
Mill Use: 112.3
Ending Stocks: 102.7
Stocks/Use Ratio: 91.5%
Current USA Balance Sheet (2014/2015)
Beginning Stocks: 2.7 (million 480 lb. bales)
Production: 15.0
Supply: 17.7
Mill Use: 3.7
Ending Stocks: 4.3
Stocks/Use Ratio: 32.1%
Commitments of Traders
Long Short
Producer / Merchant: 24,699 101,098 (contracts)
Swap Dealers: 52,850 5,390
Managed Money: 45,557 21,752
Other: 17,256 13,505
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Bearish