Report Day Gains for Cotton

Midday cotton futures are mixed with a 17 point loss for July and 21 to 43 point gains for new crop. USDA reduced new crop’s cash average price by a penny to 77 cents/lb. 

USDA raised the old crop cotton export by 400k bales to 13 million flat. With a 100k decrease to domestic use, cotton stocks were cut by 300k to 3.2 million. That reduced new crop’s carryin, but production was raised by more than enough to offset. USDA added acres back to harvest (cut abandonment by 700k), but reduced yield by 13 lbs/acre to 841. Production is now forecasted at 16.5 million bales. As for new crop usage, exports were lifted by 500k bales to for a net 200k bale increase to 3.5 million. Global exports were upped by 900k, as China is now projected to bring in 500k bales more than in May. 

The 6/8 Cotlook A Index was 94.85 cents which was down by 40 points. The new AWP for cotton was 247 points higher to 69.38 cents. ICE Certified stocks were 15,579 bales as of 6/7.

Jul 23 Cotton  is at 84.23, down 8 points,

Dec 23 Cotton  is at 81.93, up 30 points,

Mar 24 Cotton  is at 81.71, up 25 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.