The U.S. cotton balance sheet for 2024/25 shows lower production, exports, and ending stocks compared to last month. Beginning stocks and domestic use are unchanged. The September NASS forecast of U.S. production is 14.5 million bales, down about 600,000 bales from August, largely due to reduced yields for upland cotton in the Southwest. The allcotton yield forecast of 807 pounds per acre is 33 pounds lower than last month.
Cotton Prices Hold on Signs of a Better U. S. Crop
Just as the light appears at the end of the tunnel, we are run over by an oncoming train.
Cotton’s best export sales report in months was met with a triple digit selloff, a very bearish response to six weeks of positive fundamental news. It all points to the severe price damage that demand failure continues to heap on the market.
Market Movement from 02nd Sep 2024 to 07th Sep 2024.
• At the start of the week in early December, the market opened on a positive note, showing gains. However, in the last three days of this shortened week, there was a sharp decline, leading to a weekly loss of 211 points.
• The December New York cotton futures contract traded within a narrow range throughout the month, fluctuating between 67 and 71 cents. Although the USDA's WASDE report was somewhat bullish due to a 1.9 million bale reduction in U.S. production, sluggish demand and unfavorable macroeconomic conditions limited upward momentum. Ultimately, the December contract closed with a 100-point month-over-month gain.