Cotton futures are down by 65 to 121 points so far this morning. After a short lived bounce to start the week, midweek cotton almost fell sharply enough to erase it. The front months ended the Wednesday session down by 231 to 394 points. USDA lowered the cash average price for cotton by 6 cents/lb to 90 cents.Â
Monthly USDA data trimmed the cotton yield estimate by 1lb per acre to 842. That limited production by 20k bales to 13.81 million. Exports were seen 100k bales lower to 12.5m bales, for a net 100k bale higher carryout – now at 2.8 million.
On the world stage, USDA cut production by 400k bales and lifted stocks by 3.12m bales on lighter domestic usage. China was forecasted 1m bales less use and 300k fewer imports, with a 500k bale lighter use in Pakistan on 200k fewer imports.Â
The 10/7 Cotlook A index was 40 cents weaker to 101.30 cents/lb. USDA’s updated AWP for cotton is 77.19 cents/lb, down from 82.42 cents. ICE certified stocks were at 2,109 bales for 10/10.Â
Dec 22 Cotton  closed at 84.92, down 394 points, currently down 110 points
Mar 23 Cotton  closed at 83.47, down 384 points, currently down 102 points
May 23 Cotton  closed at 82.32, down 350 points currently down 65 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.
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