The midday cotton quotes show prices are down by triple digits after the USDA data release. March is trading 159 points in the red, with losses of 135 points in the new crop contracts.
USDA’s update to the US cotton production showed a 440,000 bale jump to 14.68 million bales. That was mainly due to a 79 lb increase to yield at 947 lb/ac, as harvested acres were down 440,000 acres. The balance sheet update saw a 700,000 increase to stocks at 4.2 million bales. That was mainly via the production increase, with exports being trimmed by 250,000 bales. On the World side of things, ending stocks were up by 370,000 bales to 89.93 million bales.
The monthly Cotton Ginnings report showed 12.981 million running bales ginned by January 1. That was 1.57 million RB increase from the 2 weeks prior.
Weekly cotton export sales added 72,610 RBs to the book during the week that ended 1/05. That was an increase from last week’s low sale but was just 20% of the same week last year. Accumulated cotton commitments were 8.859m RBs as of 1/05 - down 19% from last year’s pace.
The Cotlook A Index was 130 points lower on 1/11 to 100.80 cents per pound. The week’s AWP for cotton is 72.98 cents/lb, and will be updated after the close.
Mar 23 Cotton is at 82.3, down 196 points,
May 23 Cotton is at 82.54, down 185 points,
Jul 23 Cotton is at 82.55, down 181 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. For more information please view the Barchart Disclosure Policy here.
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