Cotton Holding onto Gains at Midday Despite More Acres

Cotton futures are showing modest gains on Tuesday, despite USDA reporting more acres than expected this morning. Gains of 35 to 70 points are shown at midday. Crude oil is down $0.82/bbl to $69.83. The US dollar index is up $0.118 at $100.995. 

The annual June Acreage report showed all cotton acres this spring planted at 9.85 million, which was above the trade ideas of 9.6 million and the March number at 9.64 million acres. 

Monday afternoon’s Crop Progress showed 97% of the US cotton crop planted as of Sunday, matching the average pace, with 37% squared, 1% ahead of normal. The crop was also 9% setting bolls, matching the 5-year average pace. Condition ratings were pegged at 48% good/excellent, down 5 percentage points on the week. The Brugler500 index was down 10 points to 335. Ratings in Texas were down 14 points, with Georgia ratings up just 1 point. 

The Seam reported just 12 bales sold on Monday. The Cotlook A Index was back down 50 points on 6/29 at 85.30 cents. ICE certified cotton stocks were unchanged on June 29 with the certified stocks level at 185,034 bales. The Adjusted World Price was back up 151 points last week at 63.88 cents/lb. 

Jul 26 Cotton  is at 72, up 34 points,

Dec 26 Cotton  is at 77.15, up 70 points,

Mar 27 Cotton  is at 78.48, up 68 points