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Headlines
- Cotton futures gained 14 to 77 points after the USDA's production cut announcement, supported by a weaker dollar and higher crude oil prices.
- Weekly export sales and shipments of cotton fell to recent lows, while cotton ginnings data indicated a decline in production compared to last year.
- USDA reports show a reduction in production and stocks, with adjustments to the world price and increased cash bale sales at the Seam.
Cotton futures ended the Thursday session with gains ranging from 14 to 77 points, driven by a US production cut announced by the USDA. The dollar index dropped by 298 points, and crude oil futures increased by $1.93 per barrel, providing additional support to the cotton market, which also saw increased interest from financial stocks.
Export Sales data revealed that 116,052 RB of cotton were sold for export during the week ending September 5, marking a three-week low. Weekly export shipments totaled 119,136 RB, the lowest in the first five weeks of the marketing year.
USDA Cotton Ginnings data reported a total of 466,700 RB of cotton ginned by September 1, all from Texas, representing a 3.67% decrease compared to the previous year.
The monthly Crop Production report indicated that acreage remained relatively stable, while yield decreased by 33 lbs per acre to 807 lbs. This resulted in a reduction in the production total by 596,000 bales to 14.512 million bales. Exports were reduced by 200,000 bales, and overall stocks decreased by 500,000 bales to 4 million bales.
On Wednesday, the Seam reported 3,571 online cash cotton bale sales, averaging 65.26 cents per pound. ICE cotton stocks remained unchanged as of September 11, with 265 bales of certified stocks. The Cotlook A Index increased by 50 points on September 11 to 79.60 cents per pound. The USDA Adjusted World Price (AWP) was lowered by 127 points to 56 cents per pound, valid through the following Thursday.
