Cotton Down 9.55% this Week on Large US Supply and Trade Tensions

Cotton futures posted triple digit losses in the front months on Friday, as July was down 9.55% this week. In this morning’s monthly WASDE update, cotton’s 2018/19 US balance sheet saw a 250,000 bale increase to stocks at 4.65 million bales, thanks to a reduction to exports. The first 19/20 balance sheet of the year showed a huge 1.85 million bales jump in new crop carryout to 6.4 million bales, with production seen at 22 million bales and exports of 17 million bales. World cotton stocks for old crop saw a marginal 0.03 increase to 76.47 million bales. New crop is seen at 75.69 million bales, with Chinese imports expected to increase 2.5 million bales to 11 million. Chinese trade reps headed back to China on Friday as talks were “constructive” according to President Trump. The weekly Average World Price (AWP) is now 64.65 cents/lb, down 3.62 cents from last week. Spec in cotton futures and options flipped their net position back to short by 15,088 contracts in the week of May 7 to -4,841 contracts.

Jul 19 Cotton closed at 68.450, down 178 points,

Oct 19 Cotton closed at 69.650, down 112 points

Dec 19 Cotton closed at 69.400, down 117 points

--provided by Brugler Marketing & Management




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