Cotton Futures Firm to Higher

Cotton futures are 5 to 14 points higher at midday. The USDA’s Feb WASDE with the latest data available suggests that the coronavirus impacted Chinese purchases of U.S. cotton more than the Phase One agreement, the net effect was a 1 million bale reduction in exports to the country. U.S. cotton exports were left UNCH (at 16.50m bales). World ending stocks of cotton were increased by 2.53m bales to 82.12m bales from higher global production and simultaneous lower global demand. World demand for cotton was 1.21 million bales lower vs. the Jan forecast at 119.01m bales. Additional US cotton ginned from Jan to Feb was up 3%, compared to last year when Feb accumulated bales ginned had gained 9% in the same time frame. The 19/20 MY ginnings added in Feb was below the 6.32% 5-year average. Monday sales on The Seam were 8,879 bales. The Cotlook A index was raised by 45 points to 77.20 for 02/11. The AWP for cotton is 58.44 cents/lb, good through Thursday.

Mar 20 Cotton is at 68.09, down 14 points,

May 20 Cotton is at 68.66, down 8 points

Jul 20 Cotton is at 69.51, down 5 points

Dec 20 Cotton is at 69.26, down 5 points

---provided by Brugler Marketing & Management

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