Cotton Testing or Setting Life of Contract Highs

Cotton is picking right where it left off this morning, up 55 to 89 points, after setting new LOC highs yesterday. At the midweek close, cotton was 90 to 162 points stronger. New crop prices went home on Wednesday with 94 to 107 point gains, with the new LOC high for Dec at 96.5 cents. 

USDA’s Monthly WASDE report saw 30k additional planted acres and 50k additional harvested acres for cotton. The yield was reduced by 36 lbs/acre to 849, leaving production 660k bales lighter at 17.62 million. USDA reduced exports by 500k bales on the lighter supply and slow shipments YTD, to 15 million flat. Globally, cotton production was reduced 610k bales reflecting the U.S. cut. Exports were also mildly reduced responding to the U.S. cut. Overall cotton carry-out was figured at 85.01m bales, just 602k lighter than the Dec estimate. 

The Seam reported 23,215 bales were sold on 1/11 for an average 109.53 cents. USDA’s Daily Spot Quotations report showed 25,038 bales of upland cotton was sold in their 1/12 update. The Cotlook A index for 1/10 was 95 points stronger at 128.15 c/lb. The AWP for cotton is 103.85 c/lb.

Mar 22 Cotton  closed at 117.64, up 162 points,

May 22 Cotton  closed at 114.98, up 109 points,

Dec 22 Cotton  closed at 96.34, up 107 points