August 30, 2021
By Keith Brown, DTN Contributing Cotton Analyst
The cotton market finished lower Monday, sloughing off the loss potential from now Tropical Storm Ida. The storm is bringing copious amounts for rainfall to the U.S. Delta and beyond. Supposedly, the delta cotton crop is some 50% open, but acres there are not as prolific as prior seasons. This past winter/spring, both corn and soybeans rallied to near eight-year highs siphoning off acres from cotton.
Monday afternoon, USDA will update the crop’s condition. Previously, the tabulators had rated the nation’s cotton crop at 71% good to excellent, which is just shy of the modern-day record of 75% good to excellent.
Per last week’s weekly export sales, cumulative sales for 2021/22 have reached 5.46 million bales. That amount was down from last year’s 6.852 million and below the five-year average of 6.726 million. Current sales represent 40% of the USDA’s forecast for the marketing year versus a five-year average of 47%.
Weather-wise the six- to 10-day forecast calls for above-normal temperatures and below normal precipitation for West Texas.
For Monday, December settled at 94.23 cents, down 0.61 cent, March ended at 9343, minus 40 points, and Red December (2022) ended at 83.62 cents, 0.22 cent lower; estimated volume was 18,786 contracts.