Despite the solid export demand reported on Thursday, cotton continues to back off through Thursday with old crop down by triple digits and new crop trading 40 to 55 points in the red. Futures were up by 30 points at the session high.
Census data showed Feb cotton shipments were 1.54m bales, which was a 30% increase over January and was 12% over Feb ’23. The accumulated program reached 6.46m bales through Feb, vs 6.34m last year.
USDA reported 85k RBs of cotton was sold during the week that ended 3/28. That was down 14% wk/wk but was up 4% from the 4-wk average. FAS data had new crop bookings at 23k RBs, led by sales to Honduras.
USDA’s Ag Attache raised Brazil’s cotton production by 340k bales to 14.9 million, but cut carryout by 200k to 11 million. On net ending stocks were raised to 6.2m bales. The initial outlook for 24/25 cotton has area increasing to 1.87m HA and production up to 15.35 million.
The Cotlook A Index was back down by 235 points to 95.60 cents/lb on 3/28. The AWP was 162 points weaker to 70.88 cents/lb. ICE certified stocks were 14k bales higher to 81,664 bales for 4/1.
May 24 Cotton is at 87.18, down 180 points,
Jul 24 Cotton is at 88.65, down 153 points,
Dec 24 Cotton is at 83.51, down 59 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.
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