Cotton futures posted Tuesday gains of 10 to 19 points at the close, as contracts held up despite a mildly bearish USDA report. Crude oil futures were down 49 cents per barrel at $58.39 on the day, with the US dollar index $0.114 higher to $99.175.
USDA’s Crop Production report left acreage alone, but raised yield by 10 lbs/acre to 929 lbs. That took production up 150,000 bales to 14.27 million bales. In the WASDE, there were some adjustments in the unaccounted and domestic use to take projected ending stocks up 200,000 bales to 4.5 million. The cash average price was trimmed by 2 cents to 60 cents/lb. The world stocks were left steady, as just a 40,000 bale increase was noted at 75.97 million bales.
Cotton Ginnings data showed 8.645 million RB of cotton ginned as of December 1, a 10.25% decline from the same date last year.
Commitment of Traders data for the week ending on November 4 showed specs trimming 10,311 contracts from their net short position in that week to 63,782 contracts.
The Monday online auction from The Seam saw sales on 5,608 bales at an average price of 60.2 cents/lb. The Cotlook A Index was down 25 points on December 8 at 73.95 cents. ICE certified cotton stocks were steady on 12/8 with the certified stocks level at 13,971 bales. The Adjusted World Price was updated last week to 51.28 cents/lb last week, up 51 points from the previous week.
Mar 26 Cotton closed at 63.86, up 18 points,
May 26 Cotton closed at 64.92, up 16 points,
Jul 26 Cotton closed at 65.91, up 11 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.
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