Cotton Futures Down Triple Digits on Economic Concerns

Cotton futures are showing triple digit losses this morning, as the sell off on Wall Street this week is raising concerns that the economic recovery might not be as straight forward as assumed. Futures closed yesterday off the highs, though were still in the black by 13 to 48 points yesterday. USDA has the new crop cash average cotton price at 75 cents/lb, and left the 20/21 cash price at 68. 

The May reports showed old crop carryout was reduced by 0.6 m bales to 3.3 million, including a 0.5m bump to exports now at 16.25 million bales. For new crop, USDA has the initial production forecast set at 17m bales. NMY exports are expected to be 14.7 million which would be down from 2020/21’s already record pace. New crop carryout is estimated at 3.1 million bales. 


Globally, USDA sees production increasing by 6.33m bales to 119.44. Half reflects the domestic increase, while the other half is mostly from Brazil and China. Australia, Pakistan, and India are also seen increasing output. Global cotton trade is estimated to pull back yr/yr to 45.51 million bales, as Chinese imports drop by 2m bales. 

The 5/10 Cotlook A index was down another 115 points to 93.60 cents/lb. The AWP for cotton is 71.39 cents/lb and will be updated after the close. 

Jul 21 Cotton  closed at 88.23, up 48 points, and down 1.39 this morning

Dec 21 Cotton  closed at 85.67, up 14 points, and down 1.17 this morning

Mar 22 Cotton  closed at 85.25, up 13 points, and down 1.16 this morning




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