Cotton Futures Cautious Ahead of USDA Acreage Projection

The cotton futures markets were 1 lower to 48 higher overnight, after modest Wednesday gains of 24 to 39 points. New crop contracts added 13 to 19 points to the upside but are in minus territory this morning coming into the USDA Outlook Forum. Tuesday sales reported on The Seam were 5,156 bales for 81.8 cents/lb. That was the highest average selling price on the Seam since light volume sales made in July of 2018. USDA’s Daily Spot Quotations reported 1,706 bales in the 2/17 update citing the national average cash price of 85.04 cents. The Cotlook A index was steady at 93.80 cents on Feb 16. The week’s new AWP for cotton is 70.32 cents/lb, through Thursday. Survey results ahead of USDA’s Outlook Forum show an average trade estimate of 11.77m cotton acres. That would be down 320k from 2020 if realized. The average of trade estimates is for USDA to show an initial estimate of 16.43m bale production for 2021/22.

--- provided by Brugler Marketing & Management




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