Cotton #2 Futures PricesThursday, Feb 23rd, 2012

Cotton futures are trading 24 points lower. Certificated stocks were at 127,247 bales as of the 21st. The Cotlook A Index was up 0.15 at 100.25 cents/pound. Cotton acreage and production forecasts will be projected at the USDA outlook forum this week. Cotton acreage in Pakistan is expected by some in the trade to drop 8 to 10 percent from last year. China has reduced their textile production on decreasing demand from the U.S. and Europe but is seen actively rebuilding cotton reserves that were depleted in 2011. There were 163 delivery notices posted against March futures overnight, mostly in Memphis and Galveston. Unlike in recent months, there were 5 different stoppers. Term Commodities was the main issuer at 147 lots out of their house account.