Cotton traded both directions on Wednesday, leading March to a 125 point range for the day. Prices ultimately closed near the session highs with 35 to 59 point gains across the front months. The Dollar Index continued the downtrend on Wednesday, printing lows not seen since July.
Reports from Mato Grosso show second cotton planting is underway. Some farmers have reportedly abandoned the soybeans to begin cotton planting. The second-crop cotton represents ~85% of the nation’s total cotton. Brazil’s CONAB has cotton production at 7.429 MMT, a 3.5% drop from last year, and USDA’s WAOB is forecasting 14.56m bales output, a 24% increase from the year prior.
The Cotlook A Index dropped 10 points on 12/22 to 89.40 cents. The AWP for the week is 63.80 and will be in effect until Thursday evening. The ICE certified stocks for 12/19 were 5,141 bales.
Mar 24 Cotton closed at 80.53, up 48 points,
May 24 Cotton closed at 81.56, up 59 points,
Jul 24 Cotton closed at 82.19, up 59 points
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