Cotton Market Higher after Report

Report reaction trading in the front month cotton futures has prices 10 to 32 points higher at midday. USDA’s cotton production forecast is 17.5m bales. That is down 2m bales from June on lower acres and lower yields. 2020/21 yield is estimated at 820 lbs/acre, down by 5 from the previous estimate. USDA cut new crop exports by 1m bales, but stocks were still down by 1.2 million from production losses. New crop ending stocks are estimated at 6.8 m bales. The average cash price estimate went up 2 cents to 59 cents. USDA estimated global ending stocks at 102.77 m bales for 2020/21, compared to June’s forecast of 100.56 m bales. The decrease was primarily production cuts. For old crop, USDA estimates World cotton stocks at 100.92 m bales. WTD sales on The Seam were 7,767 bales at a wtd av price of 60.07 c/lb. The July 9 Cotlook A index was up by 70 points to 70.15 c/lb. The AWP for cotton for this week is up 135 points to 51.48 cents/lb. The week’s LDP is now down to 0.52 cents.

Oct 20 Cotton is at 64.60, up 26 points

Dec 20 Cotton is at 64.12, up 23 points

May 21 Cotton is at 65.33, up 32 points

Jul 21 Cotton is at 65.56, up 12 points

--- provided by Brugler Marketing & Management

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