Cotton Off the Overnight Highs

Cotton is trading mixed within 10 points of UNCH after seeing a 43 point gain overnight. The cotton market was down by 9 to 47 points on Wednesday. The Dec contract saw a 176 point range during the day. 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 offset 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 China’s July CASDE report had Chinese cotton production at 5.78 MMT, UNCH from last month and 200k lighter than last season. Cotton imports were forecasted at 1.85 MMT, also UNCH from June’s report and 400k MT higher for the year. 

The Seam reported 5,965 bales were sold on 7/11 for an av gross price of 77.73 cents/lb. 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  closed at 81.65, down 47 points, currently up 7 points

Mar 24 Cotton  closed at 81.73, down 15 points, currently up 2 points

May 24 Cotton  closed at 81.77, down 11 points, currently up 4 points