Cotton is trading 36 to 59 points lower so far, after fading 2 cents from their earlier session highs. USDA’s old crop cotton cash price was UNCH at 82 cents, while new crop was a penny lower at 76 cents/lb.
USDA confirmed the 11.09m planted area for the 23/24 cotton crop. Abandonment was cut by more for a net 120k acre increase in harvested area. The yield adjustment completely washed the acreage changes, for a 16.5m bale output. Usage fell by 250k bales in exports for a 3.8m bale carryout. USDA’s WAOB numbers set the global cotton production at 116.84m bales, vs 116.72m in June and 117.97m last season. The World trade was a net 250k bales tighter, though USDA raised Chinese imports by 250k bales. The net global 23/24 carryout was 94.52 million and 1.73m looser than June.
Highlights from the July CASDE report had Chinese cotton production at 5.78 MMT, UNCH from last month and 200k lighter from last season. Imports were forecasted at 1.85 MMT, also UNCH from June’s report and 400k MT higher for the year.
The Cotlook A Index was 180 points lower to 89.55 cents. The AWP is 65.50 cents/lb. ICE certified stocks were 8,926 bales as of 7/10.
Dec 23 Cotton is at 81.65, down 47 points,
Mar 24 Cotton is at 81.58, down 30 points,
May 24 Cotton is at 81.62, down 26 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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