July cotton ended up 0.06 cent Friday, a quiet day of trading one day after USDA’s new-crop estimates for cotton showed higher U.S. ending stocks, but lower world ending stocks.
July cotton prices closed up 0.06 cent Friday, but were down 2.28 cents for the week. Spot cotton prices are still holding a steady upward trend, but have been having trouble with resistance near 88 cents. Thursday’s WASDE report from USDA expected U.S. ending cotton stocks to increase from 4.70 million 480-pound bales in the current season to 5.20 million bales in 2018-19.
The new-crop season is expecting a little less production of 19.50 million bales and is also expected to be supported by lower world ending stocks of 83.75 million bales in 2018-19.
Here in the U.S., western Texas is plagued by serious drought and may get limited help the next seven days, but much more is needed. Southern Georgia and South Carolina are also experiencing light to moderate drought, but overall crop conditions outside of Texas look more promising in 2018. USDA said late Monday that 20% of the U.S. crop has been planted, in line with the five-year average pace.
The ICE daily stocks report showed certified stocks down 796 on Thursday, at 73,464.
In cash online trading, The Seam showed 6,290 bales sold Thursday at an average price of 65.61 cents. Average loan value was 46.82 cents and 86,329 bales were offered.
The Cotlook A Index of world values for Thursday, May 10 was up 0.40 at 94.35 cents, putting the premium over the July futures settlement at 9.79 cents.