Cotton Ends Mixed at Close

After trading lower at midday, the cotton futures market rebounded to close mixed. Dec and March still closed 15 and 3 points in the red respectively, but the deferreds closed 9 to 31 points higher. 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 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. Monday cotton sales on The Seam were 8,455 bales for an average gross price of 70.34 cents/lb. 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 closed at 69.85, down 15 points,

Mar 21 Cotton closed at 71.65, down 3 points

May 21 Cotton closed at 72.64, up 9 points

Jul 21 Cotton closed at 73.37, up 11 points

--- provided by Brugler Marketing & Management

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