Cotton futures are slipping back lower on Tuesday, with losses of 50 to 84 points across most contracts at midday. The US dollar index is down 361 points at midday, with the crude oil down $1.43/barrel.
The US cotton crop was listed at 96% squared, by August 11, 74% setting bolls and 13% of the crop with bolls open. All three were pegged at 1% above the normal pace. Crop ratings were up 1% to 46% good/excellent, as the Brugler500 index was up 5 points to 319 with 3% shifting out of very poor.
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/ac, 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.
ICE cotton stocks were down 2,565 bales via decertification on August 9, leaving 15,796 bales of cert stocks. The Cotlook A Index was up 100 points on August 12 to 79.70 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 this Thursday.
Dec 24 Cotton is at 68.23, down 84 points,
Mar 25 Cotton is at 69.77, down 73 points,
May 25 Cotton is at 71.03, down 69 points
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