Midweek Cotton Market Red through Midday

Cotton futures are trading with midday losses of 32 to 96 points. The March contract is about 40 points off its low through midday, but was also in the red prior to the report. The cash average price was left at 83 cents. 

USDA made essentially no changes to the domestic cotton balance sheet, with just a 100k bale lighter domestic use and looser carryout. The ending stocks figure is now shown at 4.3m bales. Global S&Ds saw a 1.03m bale production trim – mainly from India. The global carryout was 850k bales tighter to 89.08 million.

USDA’s Ag Attaché reduced the Pakistani cotton import forecast to 4.5m bales from 5 flat citing importer financing. Their total use was unchanged at 9m bales such that the 500k supply cut came out of their ending stocks. In the WASDE report, USDA had Pakistan’s cotton import at 4.5 million, also lighter by 500k bales, with a 1.44m bale carryout. 

CONAB increased their cotton production outlook by 19.2% to 13.97m bales – USDA has their updated forecast at 13.3 m bales as of the WASDE update. 

The Cotlook A Index was 98.80 cents/lb on 2/07, which was 190 points lower. The AWP for cotton is 75.24 cents for the week.  

Mar 23 Cotton  is at 84.9, down 73 points,

May 23 Cotton  is at 85.59, down 79 points,

Jul 23 Cotton  is at 86.31, down 75 points