Cotton Showing Triple Digit Gains

Cotton futures are trading 191 to 235 points higher at midday, boosted by positive news on the trade war. Rumors were running around this morning that President Trump was considering an interim deal with China to delay tariffs. NASS cut projected 2019 cotton yield by 16 lbs/ac to 839 lbs, with harvested acreage down 130,000 acres at 12.51 million acres. That took production down 660,000 bales to 21.86 million. A reduction to exports however, offset the loss in production and a 400,000 bale reduction to old crop carryout (4.85 million bales), as new crop ending stocks remained at 7.2 million bales. NASS also tabulated the initial Cotton Ginnings report, showing 359,250 RB of cotton ginned by September 1, down 129,850 RB from last year. Export Sales were tallied at just 74,645 RB for 19/20, with 528 RB for 20/21. The Cotlook A Index was up 30 points on September 11 at 70.90 cents/lb. The weekly AWP is 51.57, below loan rate and will be updated on Thursday.

OCT 19 Cotton is at 61.72, up 235 points,

DEC 19 Cotton is at 61.74, up 237 points

MAR 20 Cotton is at 62.07, up 201 points

MAY 20 Cotton is at 62.68, up 191 points

-- provided by Brugler Marketing & Management

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