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

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