Cotton futures are up by triple digits in the old crop contracts. May has seen a 300 point range so far for the day, with trades on both sides of UNCH. New crop futures are trading 56 to 87 points higher so far.
USDA cut the average US 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. The 2023/24 Stx/Use ratio is the second tightest since 2016/17, trailing the 16.8% ratio set in 2020/21 in a larger export year.
The Cotlook A Index jumped back 300 points higher to 104.95 cents/lb. The Seam reported 8,510 bales sold online on 3/7 with an average gross price of 87.17 cents. The AWP was 76.88 cents/lb. ICE certified stocks were 1,636 bales as of 3/4.
May 24 Cotton is at 96.49, up 121 points,
Jul 24 Cotton is at 95.72, up 180 points,
Dec 24 Cotton is at 83.91, up 92 points
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