Cotton price action is continuing to move higher on Wednesday, with gains of 20 to 26 points. Futures largely ignored the larger projected stocks from the USDA on Tuesday, with contracts holding onto gains of 67 to 86 points into Tuesday’s close. The outside markets were supportive factors on Tuesday. Crude oil futures were up 86 cents/barrel, with the US dollar index back down $0.413 on the day.
Tuesday’s Cotton Ginnings report from NASS showed 406,750 RB ginned during the last 2 weeks of January. That took the marketing year to date total to 13.962 million RB, which was 19.67% above the same period last year. The WASDE update from USDA showed an increase of 100,000 bales to the ending stocks total via a 100,000 bale reduction to domestic use. That took the carry out projection to 4.9 million bales. World cotton stocks were up 500,000 bales to 78.41 million bales.
ICE cotton stocks were steady on February 10, at 218 bales of certified stocks. The Seam reported 15,545 bales of online sales on Monday at an average price of 62.06 cents/lb. The Cotlook A Index was back down 35 points on 2/10 at 77.05 cents/lb. The USDA Adjusted World Price (AWP) was back down 84 points last Thursday to 53.18 cents/lb. It will be updated again on Thursday.
Mar 25 Cotton closed at 67.4, up 86 points, currently up 26 points
May 25 Cotton closed at 68.45, up 74 points, currently up 23 points
Jul 25 Cotton closed at 69.47, up 67 points, currently up 20 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.More news from Barchart
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