Cotton Gains before Weekend Break

Cotton futures closed the Friday session with gains of 33 to 42 points in the front months. 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. The CoT report showed net new buying alongside of short covering from cotton spec traders. Managed money’s net position in cotton was 21,520 contracts net long on July 7. Thursday cotton sales on the online cotton trading platform The Seam were a 6 month daily high 16,288 bales. WTD sales on The Seam were 24,053 bales at a wtd av price of 57.40 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 closed at 64.71, up 37 points,

Dec 20 Cotton closed at 64.31, up 42 points

Mar 21 Cotton closed at 64.83, up 34 points

May 21 Cotton closed at 65.34, up 33 points

--- provided by Brugler Marketing & Management

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