Cotton traders bought back the fact after USDA released a bearish WASDE. The board ended the session with 39 to 163 point gains across the front month contracts. USDA’s new cash average price is 3 cents weaker to 77 cents/lb.
USDA raised the national average cotton yield by 16 lbs/acre to 783. That lifted production by 270k bales to 13.09 million. Domestic use was also cut by 100k bales, lifting stocks by 400k from October to 3.2 million. Global numbers saw an 860k bale increase to 113.5 million. Carryout was 1.58 million bales looser at 81.5 million.
USDA’s monthly Cotton Ginnings report showed 3.656m bales were ginned as of Nov 1. That is down 14% from last year’s pace, but compares to 3.543m during 21/22.
USDA’s FAS reported 395,170 RBs of cotton was sold for export during the week that ended 11/2. That was down from the MY high last week but was up from 146k RBs during the same week last year.
The Cotlook A Index for 11/7 was 130 points lower at 90.5 cents/lb. The new AWP for cotton is 64.62 cents/lb, down by 3.49 cents from last week. ICE Certified Stocks were 83,652 bales on 11/8.
Dec 23 Cotton closed at 76.52, up 163 points,
Mar 24 Cotton closed at 79.21, up 151 points,
May 24 Cotton closed at 80.13, up 104 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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