Monday Cotton Closes Red

Cotton futures tried to rally early on Monday, but quickly reverted back to red. At the close for the first trade day of the week, the front month futures were down by 155 to 187 points, though for Dec that was still above the Friday lows. 

NOAA’s 7-day QPF has as much as 7” of rain in the forecast for most of the cotton area in the Gulf. From Georgia north to Virginia most of the rainfall will be at sea, with mostly less than 1 1/2” in the fields. 

USDA reported 88% of the cotton crop was setting bolls as of 8/21, with 19% opening. The 5-yr average development would be 85% setting pods and 18% opening. Cotton conditions were 10 points lower on the Brugler500 index to a 278. Kansas was down the most from last week with a 24 point drop to 275. TX cotton was still at the bottom of the reported states with a 225 reading. 

The Cotlook A Index (old crop) was another 65 points weaker to 131 cents/lb for 8/19. USDA’s weekly Cotton Market Review mentioned 1,737 bales were sold at spot during the week of 8/18, with an average selling price of 122.67 cents. USDA’s AWP for cotton is 101.90 cents/lb. 

Oct 22 Cotton  closed at 117.89, down 186 points,

Dec 22 Cotton  closed at 114.14, down 187 points,

Mar 23 Cotton  closed at 111.24, down 160 points