Cotton Firms into USDA Reports
Cotton futures are trading mixed in new crop but 50 to 60 points higher in old crop ahead of the weekly USDA Export Sales report and the Planting Intentions report. Futures were down sharply on Wednesday on some pre-holiday profit taking. The old crop contracts sank more than 2 pennies per pound on Wednesday, though the new crop futures firmed up off their session lows to reduce the damage. New crop prices were still 82 to 96 points in the red, though Dec was 33 points off the low.
Analysts are looking for Thursday’s Planting Intentions report to show between 10.4m and 11.3m acres for 2024/25 cotton. The average 11.3m acre estimate would be a 1.1m acre increase from last year and is 300k acres over USDA’s Outlook Forum assumptions.
The Seam recorded 4,299 bales sold online for 3/26 at an average gross price pf 79.32 cents. The 3/26 Cotlook A Index was 45 points higher to 96.90 cents/lb. The AWP is 72.50 cents per pound, in effect for farm program purposes through Thursday. ICE certified stocks were shown at 41,756 bales as of 3/20.
May 24 Cotton closed at 90.77, down 264 points, currently up 64 points
Jul 24 Cotton closed at 91.44, down 242 points, currently up 52 points
Dec 24 Cotton closed at 83.34, down 96 points, currently down 4 points
On the date of publication, Alan Brugler 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.