Cotton Comes Back After USDA Report Hit

Cotton starts the Thursday session 17 to 53 points higher. Yesterday, cotton futures sustained some triple digit losses. The monthly WASDE report sees 2020/21 output 580k bales above the July estimate as increased yield offset a million acre cut. Suggesting an abandonment rate of 24%, USDA set harvested acres at just 9.25 million. Those acres are, however, estimated to bring a record 938 lbs/acre for 18.08m bales. Old crop stocks were increased 0.1m bales, raising carryover to 7.2m bales. USDA also raised new crop stocks to 7.6m bales on the larger crop. 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 and LDP is 2.56 cents/lb, with fresh numbers after the close.

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