Cotton Market Firm at Midday

The front month cotton futures are sitting within 20 points of UNCH for the midday prints. Futures were working in the black before fading out of the USDA reports. USDA lowered the cash average price for cotton by a penny to 76 cents/lb. 

Monthly S&Ds from USDA showed NASS reduced cotton acreage by 960k, but raised the yield by 80 lbs/acre to 7.06 million and 845 respectively. On net production was 350k bales lower to 12.43, and is now below last year’s output. A 100k bale export trim was the only demand shift from the Dec table, leaving carryout a net 200k tighter at 2.9 million bales. 

Global S&Ds had cotton production a net 260k bales higher to 113.18 million as a 500k bale increase to China offset the U.S. cut. Cotton carryout stocks were 1.98m bales looser to 84.38 million bales on lighter domestic use. 

The Cotlook A Index was 25 points stronger on 1/9 to 90.65 cents/lb. The Seam had 4,046 bales sold online for an average gross price of 72.15 cents/lb for 1/8. The AWP was up by another 80 points to 64.96 cents/lb., effective through next Thursday.  

Mar 24 Cotton  is at 81.42, up 6 points,

May 24 Cotton  is at 82.24, down 9 points,

Jul 24 Cotton  is at 82.84, down 10 points

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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