Cotton is shooting higher on Monday with the help from a smaller USDA production number. Contracts are up 150 to 205 points at midday. The US dollar index is just slightly higher at midday, with the crude oil leading the way, up $2.22.
USDA’s Crop production report showed 11.17 million planted cotton acres, a 500,000 acre drop, with harvested at 8.63 million, down 1.04 million acres. Yield was down just slightly from the July report at 840 lbs/av, as production was cut by 1.89 million bales to 15.11 million. Old crop stocks were up 100,000 bales to 3.15 million, but the smaller production helped the new crop to be slashed by 800,000 bales to 4.5 million.
Friday afternoon, CFTC reported managed money spec funds were net short 52,204 contracts of cotton futures and options at close of business on August 6. That was 5,583 more bearish than the previous week. Commercials also net short 7,882 contracts, leaving the index funds and small non-reportables as the only longs in the market.
ICE cotton stocks were down 380 bales via decertification on August 9, leaving 18,361 bales of cert stocks. The Cotlook A Index was down 50 points on August 9 to 78.70 cents/lb. The USDA Average World Price (AWP) was raised by 130 points on Thursday afternoon to 55.24 cents/lb and is good through next Thursday.
Dec 24 Cotton is at 70.39, up 205 points,
Mar 25 Cotton is at 71.62, up 194 points,
May 25 Cotton is at 72.66, up 175 points
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