Cotton Falling on Improved Conditions
Cotton futures had another ugly day on Tuesday if you are future bull or producer with unsold inventory. Prices settled 63 to 210 points lower, with thinly traded October the softest. Active December was down 114 points (1.14 cents/pound). USDA report showed improving US crop conditions and therefore yield potential. The US dollar index was higher, with September futures back above the 104 mark. Crude oil also added pressure by dropping $1.44 per barrel to $76.96.
Monday afternoon’s Crop Progress report showed 81% of the US cotton crop squaring, 5% faster than the average squaring pace. NASS calculated that 42% of the crop was setting bolls, 8% above average. Condition ratings saw a boost this week, up 8% to 53% good/excellent, as the Brugler500 index rose 20 points to 339.
ICE cotton stocks were down 1,674 bales on July 19 from decertification, leaving 38,466 bales of cert stocks. The Cotlook A Index was down 115 points on July 22 at 81.05 cents/lb. The USDA Average World Price (AWP) was raised 34 points to 56.42 cents/lb, last week and is in effect through Thursday.
Dec 24 Cotton closed at 69.48, down 114 points,
Mar 25 Cotton closed at 71.36, down 115 points,
May 25 Cotton closed at 72.82, down 108 points
Πηγή: barchart.com