By Keith Brown, DTN Contributing Cotton Analyst
USDA issued its April Crop Report on Friday, in which domestic ending stocks were unchanged, but world carryout was raised by approximately 800,000 bales.
The summary from the USDA WASDE report released Friday is as follows:
“The U.S. cotton 2021/22 supply and demand forecasts are unchanged from last month. The marketing year price received by upland cotton producers is projected at a record 91 cents per pound, up 1 cent, reflecting recent high prices. The February 2022 upland farm price reached a record 100 cents per pound.
“Month-to-month changes in the global 2021/22 cotton estimates are also small, with higher production and lower consumption resulting in an 800,000-bale increase in ending stocks, to 83.4 million. Production is forecast 340,000 bales higher, with increases for Pakistan and Greece. A 500,000-bale decline in China’s expected consumption resulted in a similar decline in the global estimate, which now stands at 124.1 million.
“A 300,000-bale decline in both China and Pakistan’s import forecasts are only partly offset by a 150,000-bale increase for Turkey. World trade is projected about 450,000 bales lower this month, with exports projected lower for India, Brazil, and Malaysia. Approved by the Secretary of Agriculture and the Chairman of the World Agricultural Outlook Board.”
Later Friday afternoon at 2:30 p.m. CDT, the CFTC will issue its weekly Commitments of Traders report. In its last report, the managed funds had increased their net-long position to 75,707 contracts. Today’s data will be as of this past Tuesday.
For the week, May cotton is down 2.14 cents, for the month off 3.28 cents, but for the year, it is up 21.93 cents. First Notice Day for the May contract commences on Monday, April 25.
Today, May cotton settled at 132.41, down .79 cent; July closed at 131.06, minus .34 cent; and December finished at 115.48, .79 cent higher. Today’s estimated volume was 67,212 contracts.
Source: Agfax