OCTOBER 20, 2023
DECEMBER FUTURES FELL BELOW RECENT LONG-TERM TRADING RANGE FOR THE WEEK ENDING OCTOBER 19
• U.S. Retail Sales Higher than Expected, but Clothing Sales Declined, Adding Pressure to Cotton Prices
• Lackluster Demand for U.S. Cotton Reported for Week Ending October 12
• Favorable Harvest Weather Set to Continue in Upcoming Week
December futures faced pressure this week, breaking through the low end of the trading range that was established in the past few months. Cotton prices were higher going into the weekend, being boosted by rising crude prices and geopolitical concerns. Prices pulled back early in the week, settling at low levels not seen since August of this year. Support was found on Wednesday when fixation levels were triggered, helping futures bounce back to the lower end of the long-term moving average. A lackluster Export Sales Report and mixed news in the outside market caused cotton futures to trade on both sides of the market on Thursday. For the week ending October 19, December futures settled at 84.27 cents per pound, down 65 points when compared to the week prior. Certificated stock increased 14,634 bales, reaching its highest level since 2021, and finished the week at 58,205 bales. The daily volume traded was heavy this week, but total open interest declined 3,532 contracts to 248,078.