AgriCharts Market Commentary

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Cotton Higher on Support from Trade Talks

Cotton futures Closed 167 to 258 points higher in the nearby contracts on Friday. Optimism from this week’s trade talk sessions gave cotton a boost. The CFTC reported earlier that as of Tuesday, managed money had been at a net short position for cotton futures to the tune of 19,306 contracts. Managed money had reduced their net short position by 5,489 contracts from a week ago. Outside of the production reduction on Thursday (6 lb drop to yield at 833 lbs/ac), USDA left the demand side unch for the US balance sheet. Through October 3, exports of upland cotton have totaled 1.905 million RB, 12% of USDA’s projection and ahead of the 11% average pace. Total commitments are 58% of that projection and 7% faster than normal. The Cotlook A Index was down 50 points to 71.75 cents/lb for October 9. The AWP is was updated to 53.90 cents/lb on Thursday, up 54 points from last week.

DEC 19 Cotton is at 64, up 258 points,

MAR 19 Cotton is at 64.52, up 244 points

MAY 20 Cotton is at 64.81, up 208 points

JUL 20 Cotton is at 64.95, up 167 points

-- provided by Brugler Marketing & Management

Cotton Higher on Support from Trade Talks

Cotton futures are higher so far this Friday, up triple digits from 150 to 234 points higher in the nearby contracts. Optimism from this week’s trade talks are lending support at midday. President Trump and Vice Premier Lis He are expected to meet this afternoon. Outside of the production reduction on Thursday (6 lb drop to yield at 833 lbs/ac), USDA left the demand side unch for the US balance sheet. Through October 3, exports of upland cotton have totaled 1.905 million RB, 12% of USDA’s projection and ahead of the 11% average pace. Total commitments are 58% of that projection and 7% faster than normal. The Cotlook A Index was down 50 points to 71.75 cents/lb for October 9. The AWP is was updated to 53.90 cents/lb on Thursday, up 54 points from last week.

DEC 19 Cotton is at 63.76, up 234 points,

MAR 19 Cotton is at 64.22, up 214 points

MAY 20 Cotton is at 64.6, up 187 points

JUL 20 Cotton is at 64.78, up 150 points

-- provided by Brugler Marketing & Management

Cotton Higher Following Fridays Overnight Session

Cotton futures are trading 80 to 89 points higher in the nearby contracts this morning. They saw 55 to 73 point losses in nearby months on Thursday. USDA’s update to the 2019/20 cotton balance sheet shows production of 21.71 million (480-lb) bales, a 150,000 bale cut from the previous number. Carryout for US cotton is now projected at 7 million bales thanks to the reduction to production, down 0.2 million bales. That would still be described as ample. On the world side, ending stocks were trimmed by just 60,000 bales to 83.69 million bales. The Cotton Ginnings report from NASS showed 1.283 million RB ginned as of October 1, a 660,850 RB increase from the two weeks prior and down 0.35% from last year. Weekly Export Sales totaled 188,841 RB in upland cotton for the week that ended on October 3. That is the second largest total this MY, and 92.7% above the same week last year. The Cotlook A Index was down 50 points to 71.75 cents/lb for October 9. The AWP is was updated to 53.90 cents/lb on Thursday, up 54 points from last week.

-- provided by Brugler Marketing & Management

Cotton Market News and Commentary

Cotton futures saw 55 to 73 point losses in nearby months on Thursday. USDA’s update to the 2019/20 cotton balance sheet shows the new production projection at 21.71 million (480-lb) bales, a 150,000 bale cut from the previous number. Carryout for US cotton is now projected at 7 million bales thanks to the reduction to production, down 0.2 million bales. On the world side, ending stocks were trimmed by just 60,000 bales to 83.69 million bales. The Cotton Ginnings report from NASS showed 1.283 million RB ginned as of October 1, a 660,850 RB increase from the two weeks prior and down 0.35% from last year. This morning’s Export Sales report showed 188,841 RB in upland cotton export sales for the week that ended on October 3. That is the second largest total this MY, and 92.7% above the same week last year. The Cotlook A Index was down 50 points to 71.75 cents/lb for October 9. The AWP is was updated to 53.90 cents/lb on Thursday, up 54 points from last week.

DEC 19 Cotton closed at 61.54, down 55 points,

MAR 19 Cotton closed at 62.18, down 62 points

MAY 20 Cotton closed at 62.78, down 73 points

JUL 20 Cotton closed at 63.34, down 73 points

-- provided by Brugler Marketing & Management

Cotton Lower at Midday

Cotton futures drops double digit points after Thursday’s report releases. USDA’s update to the 2019/20 cotton balance sheet shows the new production projection at 21.71 million (480-lb) bales, a 15,000 bale cut from the previous number. Carryout for US cotton is now projected at 7 million bales thanks to the update to production, down 0.2 million bales. On the world side, ending stocks were trimmed by just 6,000 bales to 83.69 million bales. The Cotton Ginnings report from NASS showed 1.283 million running bales ginned as of October 1, a 660,850 RB increase from the two weeks prior and down 0.35% from last year. This morning’s Export Sales report showed 188,841 RB in upland cotton export sales for the week that ended on October 3. That is the second largest total this MY, and 92.7% above the same week last year. The Cotlook A Index was down 50 points to 71.75 cents/lb for October 9. The AWP is 53.36 cents/lb and will be updated on Thursday.

DEC 19 Cotton is at 61.95, down 14 points,

MAR 19 Cotton is at 62.7, down 10 points

MAY 20 Cotton is at 63.35, down 16 points

JUL 20 Cotton is at 64, down 7 points

-- provided by Brugler Marketing & Management


Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com