Turnaround Tuesday for Cotton

Following Monday’s triple digit gains, front month cotton futures are down 37 to 48 points at midday. The updated USDA cash average price for cotton is 30 points better at 64 cents/lb. The monthly S&D tables showed cotton production is estimated at 17.09 million bales. That was a 40k bale increase from the October forecast via a 2 lb/acre yield bump. USDA has US cotton carryout at 7.2 m bales for a stocks/use of 42.1%. October’s stocks/use was also 42.1% and 19/20 was 31.3% in the November WASDE. Global cotton exports were seen at 42.87 million bales, up 630k. Increases were for Brazil and Australia. The additional export business was headed for Pakistan with a 500k bale increase. Global carryout is estimated at 101.44 million bales, up just 310k mo/mo. USDA’s Cotton Ginnings report showed 3.987 million bales were ginned through November 1st. Through the same time last year, 6.25 million bales had been ginned. The weekly NASS Crop Progress report showed cotton harvest progressed to 61% complete through 11/08. The Cotlook A index fell back 80 points to 76.20 cents/lb. The AWP for cotton is 56.01 cents/lb, good through Thursday.

Dec 20 Cotton is at 69.52, down 48 points

Mar 21 Cotton is at 71.29, down 39 points

May 21 Cotton is at 72.18, down 37 points

Jul 21 Cotton is at 72.88, down 38 points

--- provided by Brugler Marketing & Management

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