Cotton Giving Back Some Gains on Wednesday Morning
Cotton is showing early weakness on Wednesday, with losses of 22 to 39 points. Futures were in rally mode on Tuesday, as USDA played a supportive role. Contracts were up 161 to 178 points at the close. The US dollar index was back down $0.466 to $97.895, as crude oil futures were down 86 cents.
USDA showed a total of 840,000 planted acres and 1.3 million harvested acres cut from cotton on Tuesday with yield up 53 lbs to 862 lbs/ac. Production was still trimmed by 1.39 million bales to 13.21 million bales. That mixed with a 100,000 bale cut to old crop stocks to 4 million bales, helped to tighten the new crop stocks. That was down 1 million bales to 3.6 million with a 500,000 bale cut to exports.
The Seam reported 2,638 bales sold on the Monday online auction at an average price of 70.47 cents/lb. The Cotlook A Index was back up 25 points at 78.00 cents on August 11. ICE cotton stocks were steady on 8/11, with the certified stocks level at 18,242 bales. USDA’s Adjusted World Price (AWP) was down 13 points on Thursday afternoon at 54.39 cents/lb.
Oct 25 Cotton closed at 67.07, up 178 points, currently down 92 points
Dec 25 Cotton closed at 68.39, up 163 points, currently down 39 points
Mar 26 Cotton closed at 69.84, up 161 points, currently down 33 points
On the date of publication, Austin Schroeder 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.