Cotton futures are lower by 20 to 41 points so far this morning. The market faded the early session gains on Thursday, but still ended the day 11 to 28 points in the black. Preliminary OI in the March contract was down to just 24 contracts.
USDA’s Ag Outlook Forum pegged 2023 US cotton acreage at 10.9 million acres. That is down from 13.76m from 22/23, but abandonment is projected to drop from 45.9% to 18.3%. Total output is expected to be 7.6% higher at 15.8m bales. The expected carryout drops slightly to 4 million bales. The farm gate price was projected as 80 cents/lb.
The Cotlook A index was steady at 96.85 cents/lb on 2/22. The Seam reported 4,958 bales were sold at spot on 2/22 for an average gross price of 80.5 cents. The AWP for cotton was 327 points lower to 70.78 cents/lb. ICE certified stocks were 1,147 bales on 2/22.
Mar 23 Cotton closed at 82.41, up 16 points, currently down 41 points
May 23 Cotton closed at 82.16, up 28 points, currently down 31 points
Jul 23 Cotton closed at 82.63, up 11 points, currently down 30 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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