Midday cotton quotes are trading triple digits weaker to close out the week. The May cotton contract is down by a limit, giving back the move yesterday to close March’s expiration gap. New crop futures are down by 121 to 160 points so far. USDA left the cash price at 77 cents/lb.
USDA surprisingly cut the cotton yield by another 23 lbs per acre to 822. That lowered production and tightened stocks with no other change to use. Cotton stocks are now projected at the tightest since 12/13 at 2.5 million lbs. Stx/Use is still just a 2-year low,
FAS reported 52k RBs of cotton was sold for export during the week that ended 2/29. That was up from the MY low last week but still 100k RBs shy of the 4-wk average. The week’s exports were listed at 331k RBs.
The Cotlook A Index fell by 30 points to 101.05 cents/lb on 3/5. The Seam had 4,664 bales sold on 3/4 for an average gross price of 88.63 cents/lb. The AWP was down 59 points to 76.88 cents/lb. ICE certified stocks were 1,636 bales as of 3/4.
May 24 Cotton is at 95.28, down 400 points,
Jul 24 Cotton is at 93.96, down 382 points,
Dec 24 Cotton is at 82.91, down 143 points
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