Cotton Falling as USDA Confirms Drop to Acres

Austin Schroeder Barchart Mon Mar 31, 11:57AM CDT
Cotton field with closeup by Trisha Downing via Unsplash

Cotton prices are weaker at Monday’s midday, with USDA confirming lower cotton acreage. Futures are down 46 to 62 points on some sell the fact reaction. Crude oil futures are up $2.18/barrel, as the US dollar index is $0.261 higher so far on the day. 

USDA’s Prospective Planting report tallied a total of 9.867 million cotton acres intended for this spring, which is slightly below the average trade estimate. That would be a decline of 1.315 million acres from last year if realized. 

Friday’s CFTC Commitment of Traders report showed managed money adding back 4,193 contracts to their net short in cotton futures and options as of March 25. They held a net short of 73,810 contracts by Tuesday. 

The Seam showed 2,234 bales in online sales on 3/28 at an average price of 60.52 cents/lb. The Cotlook A Index was back up 125 points on Friday at 79.15 cents/lb. ICE cotton stocks were unchanged on March 28, with the current level of certified stocks at 14,488 bales. USDA’s Adjusted World Price (AWP) was back down 97 points in on Thursday afternoon report to 53.66 cents/lb. 

May 25 Cotton  is at 66.28, down 62 points,

Jul 25 Cotton  is at 67.57, down 53 points,

Dec 25 Cotton  is at 69.63, down 46 points


On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.