Cotton Fades Thursday Gains

Cotton traded lower overnight, fading the triple digit gains from Thursday. Futures are running 36 to 77 points lower this morning. At the close, old crop cotton futures were 325 points higher, and May futures expired at 89.48 cents/lb. New crop prices ended the session 114 to 171 points higher at the close. 

Cotton bookings were reported at 63,659 RBs, down 18% wk/wk and well below the +400k RBs sold during the same week last year. Cotton export shipments were a MY high and the largest since the week April 2020. Accumulated cotton exports remain at record pace with 11.3m RBs shipped through week 39. For new crop, USDA’s weekly update showed 61,227 RBs were sold, bringing the NMY forward book to 1.7m RBs. 

USDA’s initial Ag Attache estimate for India’s 21/22 cotton production was 29.5m bales. if realized that would be 400k bales higher than 20/21 on 100k HA lighter area. The Ag Attache sees India’s carryout at 16.48m bales, which would be the tightest stocks since 18/19. 

USDA’s Daily Spot Quotations report for 5/6 showed 918 bales were sold at spot, bringing the season’s total to 1.351 million. The 5/5 Cotlook A index was back down by 75 points to 92.30 cents/lb. The AWP for cotton was lowered by 2.32 cents to 71.39 cents/lb. 

Jul 21 Cotton  closed at 90.58, up 325 points, and down 77 this morning

Dec 21 Cotton  closed at 86.72, up 132 points, and down 60 this morning

Mar 22 Cotton  closed at 85.82, up 114 points, and down 36 this morning

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