Cotton Closes Black on Monday

Futures were initially weaker out of the WASDE, but eventually recovered and closed the report day with 64 to 92 point gains. December cotton had a wide +6 cent range from Low to High to start the week.  Cotton’s cash price was trimmed by a penny to 96 cents/lb in the monthly WASDE report. 

NASS data released after the close had 49% of the cotton crop’s bolls opened. That is 10% points more wk/wk and is 8% points ahead of average. NASS also said cotton harvest in TX is advanced enough to report. Nationally the crop is 8% harvested, matching the average, with TX 17% stripped compared to 14% on average. As for conditions, NASS data converted to a 285 on the Brugler500 Index. That was down from 294 last week, as KS, CA, and OK were the only states to improve wk/wk. 

USDA’s monthly WASDE data had 1.31m more cotton acres planted this season than was reported in August. Harvested was raised by 750k acres to 7.88 million, seeing a 560k acre larger abandonment on net. The national average yield was reduced by 3lbs/acre to 843. That was not enough to offset the increased acreage as production was 1.26m bales higher than August at 13.83 million. That also lifted exports by 600k leaving 900k bales for carryout – now at 2.7 million. 

Global cotton production was also lifted, as Australia and China offset lighter Pakistan and the U.S. was upped. Cotton trade was little changed, leaving carryout 1.98m bales higher at 84.75 million. 

The Cotlook A Index for 9/9 was 225 points stronger to 122.40 cents. The Seam reported 2,200 bales were sold on 9/9 for an average gross price of $1.14 84/100. The AWP for cotton is 94.92 cents/lb for the week.  

Dec 22 Cotton  closed at 105.71, up 87 points,

Mar 23 Cotton  closed at 102.37, up 92 points,

May 23 Cotton  closed at 100.13, up 85 points