Cotton # 2 Futures. The Epic 52-Week Highs Breakthrough

Pandorra Updated   
ICEUS_DLY:CT1!   Cotton No. 2 Futures
The main technical graph is for Cotton # 2 Futures that firmly up this year, with solid 13.5 percent performance in 2024 to this time.

The weekly Commitment of Traders report showed managed money cotton traders dropped 6k existing shorts and added 11.6k new longs during the week that ended 2/6. That raised their net long to 46,344 contracts. Commercial cotton hedgers added 17.5k short hedges for a 90,540 contract net short as of 2/6.

NOAA’s 7-day QPF has another band of heavy precip for the South/East. From the Gulf of TX through TN/NC/KY accumulations top out near 4”. Most of Northern LA, North/Central MS, Northern AL, and Northern GA will get ~2”. Central TX cotton area will also get ¾ to 1 ½” of precip to build up soil moisture reserves. Yesterday’s Drought Monitor confirmed there was still some D3-D4 in Northeast MS, but the total D3-D4 area has fallen from 29% to 2% since December 5th for the South-Southeast.

The monthly WASDE update showed a 150k bale lighter domestic cotton use, now at 1.75 million bales. Exports, however, were raised by 200k bales to offset. On net ending stocks tightened by 100k to 2.8 million in the report.

The main technical graph for Cotton # 2 futures CT1! indicates on 52-week highs breakthrough, as massive 20-years SMA supported the price over the past 12-15 months.

Weekly RSI(14) sub chart is to confirm this epic breakout, while COT data says, Largest speculators are still positive in net position all the time, keeping calm above Zero-level, while producers are to massively sell the production.

Feb 14, 2024

Day after day, as well as week after week, Cotton Futures extend the rally

Mar 3, 2024

Cotton Futures are back to 100+ USX, first time since September 2022.


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