Cotton Falling on Acreage Swing
Cotton prices are collapsing at midday, as USDA reported a larger swing to cotton acres this spring than initially thought. Contracts are down 68 to 205 points so far at midday. The outside factors are nit help matters, with crude oil down 51 cents/barrel.
This morning’s June Acreage report released by NASS pegged 2024 US cotton acreage at 11.67 million acres, a near 1 million acre increase over the March Intentions. That was also more than 850,000 acres above estimates, as well as exceeding the top end.
ICE certified cotton stocks level was at 59,035 bales on June 27. The Cotlook A Index was up 25 points on June 27 at 85.45 cents/lb. The USDA Average World Price (AWP) rebounded from the previous week decline, up 1.58 to 58.23 cents per pound. It will be in effect through July 4. Because of the holiday, the next AWP, FCA, CCA and LDP rate announcement from FSA will be on Friday, July 5 at 8 AM EDT.
Jul 24 Cotton is at 72.02, down 68 points,
Dec 24 Cotton is at 72.53, down 205 points,
Mar 25 Cotton is at 74.24, down 175 points
On the date of publication, Alan Brugler 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.