Cotton Drops Triple Digits

Cotton futures fell back on Wednesday closing with losses of as much as 129 points. New crop cotton yield was upped by NASS to a record 938 lbs/acre. That is 14% above last year and 4% above the previous record for August of 2018/19. USDA revised new crop production 0.58 m bales higher as well, to 18.08m bales. Old crop stocks were increased 0.1m bales, raising carryin to 7.2m bales. USDA also raised new crop stocks to 7.6m bales on the larger crop. USDA did leave the average farm price of new crop cotton UNCH at 59 cents/lb. Globally new crop cotton stocks were hiked 2.14m bales to 104.91m bales. NASS reported new crop cotton ginnings were 3,650 RBs in August. That was down 100 RBs from 2019’s August ginnings. The August 11 Cotlook A index was 69 cents/lb after a 25 point bump. The AWP for cotton is 49.44 cents/lb through Thursday. The week’s LDP is 2.56 cents/lb.

Oct 20 Cotton closed at 61.84, down 119 points,

Dec 20 Cotton closed at 62.2, down 129 points

Mar 21 Cotton closed at 63.14, down 119 points

May 21 Cotton closed at 63.89, down 107 points

--- provided by Brugler Marketing & Management




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