December cotton finished virtually flat on Thursday in yet another very hesitant trade. Initially, the market concerned itself with potential losses that Hurricane Michael dealt to the Alabama/Georgia crops.
At this time no accurate figure can be ascertained, but from our many conversations and texts with area producers, we would venture to say an average loss of 75% to the region was inflected. That might translate into a bale loss ranging from 500,00 to 750,000 — maybe more.
Additionally, USDA issued its monthly supply-demand report at noon Thursday. The agency raised the U.S. 2018 crop nearly 100,000 bales to 19.76 million bales. Also, the government lowered exports 200,000 bales, pegging them at 15.50 million. That adjustment in turn raised U.S. carry from 4.70 million to 5.0 million. The only positive from the report was world beginning stocks were slashed 3.0 million bales.
December cotton settled at 7681 up 1, March was 7817, up 13, and Red December was 7620, up 20. Estimated volume was 31,000-contract traded.