Cotton futures faded on report day with losses of 36 to 118 points. USDA reduced their average farm price for cotton by a nickel to 85 cents/lb.Â
Monthly USDA projections had a 13 lb/acre cotton yield boost to 855. That increased production by 220k bales to 14.03 million. That is still down from 17.5m bales last year and compares to the May WASDE initial estimates of 16.5m bales. Demand was mostly UNCH from October, which left carryout 200k bales higher at 3m flat. Global cotton numbers were little changed from the October forecasts with a 1.6m bale lighter output, 20k bale higher trade, and a net 600k bale lighter carryout.Â
The Cotton Ginnings report showed had 4.384m RBs ginned for the season through October. That is the most since +6m bales in 2019/20.Â
The Seam reported 1,839 bales were sold on 11/8 for an average gross price of 84.16 cents. The Cotlook A Index for 11/8 was another 40 points stronger to 104.5 cents/lb. USDA’s AWP for cotton is 65.46 cents for the week. Â
Dec 22 Cotton  closed at 86.5, down 118 points,
Mar 23 Cotton  closed at 84.73, down 101 points,
May 23 Cotton  closed at 83.79, down 105 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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