Cotton Down Triple Digits

Old crop cotton futures are down triple digits coming out of the weekend. New crop prices are also trading lower, but losses are limited to 86 points so far.  

USDA’s Ag Attaché forecasts 2021/22 cotton production from China at 5.9 MMT, down 50k yr/yr. In 2020/21, Xinjiang accounted for 87% of the total production, and the Ag Attaché foresees an increase in Xinjiang’s cotton production concentration of the total. Effective since Jan 13 2021, US had placed a ban on cotton sourced from Xinjiang. For NMY imports, USDA’s Ag Attaché sees a 100k MT increase to 2.4 MMT.  

The Cotlook A index for 4/9 was 190 points higher, back up to 88.50 cents/lb. The AWP for cotton for the week is 64.92 cents/lb.

May 21 Cotton  is at 80.69, down 171 points,

Jul 21 Cotton  is at 82.05, down 169 points,

Dec 21 Cotton  is at 80.94, down 84 points

Market Commentary provided by:

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