Cotton Leaking Lower Following USDA Production Increase

Austin Schroeder Barchart Fri Jul 11, 11:55AM CDT
Cotton on dry branch by Marianne Krohn via Unsplash

Cotton prices are trading with losses of 20 to 50 points so far on Friday trade. Crude oil is up $1.88/barrel at $68.45, with the US dollar index $0.193 higher to $97.515. 

The monthly update to the USDA balance sheets showed a 300,000 bale hike to US cotton exports at 11.8 million bales. That tightened the US stocks by the same amount to 4.1 million bales. For new crop, production offset that carryover drop, with a 600,000 bale increase on the larger acreage total to 8.66 million harvested acres and 14.6 million bales of production. Yield was trimmed by 11 lbs/ac. Still the increase in supply caused the projected carryout to be up 300,000 bales to 4.6 million. 

The Cotlook A Index was up 45 points on 7/10 at 78.60. ICE cotton stocks were down 14 bales on July 10 via decertification, with the certified stocks level at 35,333 bales. USDA’s Adjusted World Price (AWP) was back down 63 points on Thursday afternoon at 54.71 cents/lb. 

Oct 25 Cotton  is at 66.05, down 20 points,

Dec 25 Cotton  is at 67.36, down 37 points,

Mar 26 Cotton  is at 68.64, down 42 points


On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.