Cotton Firm to Slightly Lower

Front month cotton contracts are trading UNCH to 8 points lower. March WASDE updates lowered the 19/20 U.S. cotton yield 12 lbs/acre to 805. That dropped U.S. cotton production to 19.80 million bales but is still 7.78% above the 18/19 MY. Lower production also tightened the U.S. ending stocks to 5.1 million bales. World cotton ending stocks were projected to be 83.4 million bales. That was a 1.28 million bale increase over Feb. USDA cut cotton consumption in China by 1m bales to 36.5 million bales. USDA lowered the average cash price for cotton 2 cents to 60 c/lb. That is the lowest in 11 years if it stands. The 03/10 Cotlook A index was down 145 points to 70.70 c/lb. The AWP for cotton is 53.36 c/lb, and will be updated tomorrow after the close.

May 20 Cotton is at 61.4, down 1 point,

Jul 20 Cotton is at 61.95, down 8 points

Oct 20 Cotton is at 62.28, unch

Dec 20 Cotton is at 62.27, down 1 point

--- provided by Brugler Marketing & Management

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