Cotton is down by 31 to 41 points coming out of the long weekend, though prices are 10-20 points off their overnight lows. Cotton futures closed red on Friday, but by within 10 points. March prices were rallying into the USDA reports but fell after seeing the data. March futures were still 112 points higher for the week. USDA lowered the estimated cash average price for cotton by a penny to 76 cents/lb.
Weekly data from CFTC showed the funds extended their net short by 2.5k to 6.9k contracts. Commercial cotton traders added 4.6k new contracts during the week, but on net only reduced their net short by 144 to 40,585.
USDA’s WAOB reported a net US production decrease of 350k bales to 12.43 million bales. That came via offsetting acreage and yield adjustments and is now below last year’s output. A 100k bale export trim was the only demand shift from the Dec table, leaving carryout a net 200k tighter at 2.9 million bales. Global S&Ds had cotton production a net 260k bales higher to 113.18 million as a 500k bale increase to China offset the U.S. cut. Cotton carryout stocks were 1.98m bales looser to 84.38 million bales on lighter domestic use.
USDA’s weekly Cotton Market Review had 42,224 bales sold during the week with prices averaging 76.75 cents. The Seam reported 22,424 bales were sold online on 1/11 for an average gross price of 75.71 cents/lb. The Cotlook A Index was 25 points stronger on 1/9 to 90.65 cents/lb. The AWP was up by another 80 points to 64.96 cents/lb., effective through next Thursday.
Mar 24 Cotton closed at 81.31, down 5 points, currently down 39 points
May 24 Cotton closed at 82.29, down 4 points, currently down 37 points
Jul 24 Cotton closed at 82.94, unch, currently down 32 points
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