Image from Texas AgriLife Extension
The cotton market closed shortly before the February highs contract on Thursday, driven by the positive numbers from WASDE in June and the outlook for harsh weather.
In that crop report, the USDA smashed its starting inventory (3.15MB) and increased its exports (14.80MB), resulting in a decrease in its final inventory (2.90MB). In addition, government aggregates have reduced global carryouts by approximately 1.70 MB from the previous 90.00 MB to 89.30 MB. China’s usage has increased by 1 million bal bal and Turkey’s consumption has increased by 200,000 bal.
Then, unfortunately, there is relentless weather in this bad weather. The system is currently hitting the US Delta. Double-digit rainfall has been reported in some places this week alone, causing widespread damage to fields and crops. Also, “something” could be built in the Caribbean, which could plunge into Louisiana and cause further confusion.
To be on the safe side, all July options will expire at the time of payment on Friday. After that, the spot contract will be delivered from June 24th.
Heading to Friday’s session, December cotton is up 2.24 cents a week, 4.80 cents a month and 13.25 cents a year.
On Thursday, July cotton closed at 87.36 cents and rose 0.74 cents, December closed at 88.21 cents and rose 0.87 cents, and March 2022 closed at 88.07 cents, 0.85 cents. It has risen. The volume was 54,477 contracts.
https://agfax.com/2021/06/10/dtn-cotton-close-market-ends-sharply-higher/ Market closes significantly higher – AgFax