Cotton acreage was reported to be 10.25 million acres in the June Acreage report released late Friday (6/28) morning. That fell within the range of pre-release survey results but toward the low end. The range extended from 10.2 million acres to 10.7 million, with an average figure at 10.40 million. In that context, it seemed supportive of the price outlook for late 2013 and early 2014.

This latest USDA acreage figure came in 225,000 acres above the planting intentions total, at 10.026 million acres, reported in March. When viewed in that context, the 10.25 million total is probably a little less friendly toward prices than it looks at first glance. Of course, developments in weather and on the demand side could exert great influences over forthcoming prices.

Cotton futures posted decidedly mixed reactions to the acreage data. A portion of the confused reaction can probably be blamed upon the looming expiration of the July contract, particularly with the October future being rather lightly traded in recent weeks. October cotton actually ended the day having lost 0.52 cents to 85.23 cents/pound, whereas the more actively traded December contract closed slightly higher 84.01 cents/pound. The situation was further confused by Friday afternoon stock index weakness and persistent firmness exhibited by the U.S. dollar. Neither of those developments can be viewed as particularly good news by cotton bulls, since both hold negative implications for future demand for apparel and cotton. In fact, financial market news published early next week could affect the cotton price outlook more than the acreage data published today.