Cotton Extends Correction in Wednesday

Cotton futures “sold the fact” yesterday and have extended the downside another 189 to 229 points this morning. Yesterday, front month cotton futures closed with another triple digit session, although Tuesday’s move was to the downside. Prices had given back 288 to 341 points through July ’22. October 2022 was even down 134 points to 93.24 cents. Cotton’s cash average price was 6 cents stronger to 90 c/lb in the USDA update. 

The NASS Crop Progress update showed 78% of cotton bolls were open as of 10/10. That compares to 82% on average. Harvest was seen 6% points behind the average pace at 20% picked. Texas’ harvest was seen at 29% complete, with their average at 27%. GA was also ahead of schedule, having collected on 15% of area compared to the 11% average pace. 

USDA trimmed cotton’s average yield by 24 lbs/acre. Output was seen at 18m bales, after a 510k bale cut. The demand was UNCH from the Sep estimates reducing carryover to 3.2m bales. That level implies a Stx/Use ratio of 17.8%. 

USDA’s DSQ report showed 362 bales sold on 10/12. The Cotlook A index was 80 points weaker to 119.25 cents/lb. The AWP for cotton is now 91.81 cents/lb, up from 83.92 last week. 

Dec 21 Cotton  closed at 106.38, down 341 points, and down 225 this morning

Mar 22 Cotton  closed at 104.1, down 314 points, and down 229 this morning

May 22 Cotton  closed at 103.04, down 311 points, and down 189 this morning




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