Cotton prices are trading 26 to 33 points lower through the front months as of Thursday’s midday. The Export Sales data will be released on Friday morning due to the earlier federal holiday. The Dec ’23 contract is up by 6 points so far to an 8.65 c/lb discount to the spot Dec. Yesterday USDA lowered the cash average price for cotton by 6 cents/lb to 90 cents.
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.
The 10/12 Cotlook A index was up 50 points to 106.65 cents per pound. USDA’s AWP for cotton is 77.19 cents/lb. ICE certified stocks were at 2,109 bales for 10/10.
Dec 22 Cotton is at 84.49, down 43 points,
Mar 23 Cotton is at 83.08, down 39 points,
May 23 Cotton is at 81.9, down 42 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.
/Nvidia%20logo%20and%20sign%20on%20headquarters%20by%20Michael%20Vi%20via%20Shutterstock.jpg)
/Alphabet%20Inc_%20and%20Google%20logos%20by%20IgorGolovinov%20via%20Shutterstock.jpg)
/NVIDIA%20Corp%20logo%20on%20phone-by%20Evolf%20via%20Shutterstock.jpg)