NEW YORK, June 9: Cotton futures on the Intercontinental Exchange (ICE) fluctuated around flat on Friday. The US Department of Agriculture's (USDA) monthly supply and demand report had little impact, and both production and exports are expected to increase.
ICE's front-month July cotton futures contract fell 0.27 cents, or 0.32%, to settle at 84.04 cents per pound.
The most active December cotton futures contract rose 0.19 cents, or 0.23%, to settle at 81.82 cents a pound.
The U.S. Department of Agriculture's June supply and demand report released on Friday showed that compared with the previous month, U.S. cotton beginning stocks for the 2023–24 season decreased, but production, exports, and ending stocks all increased.
The report was modest, as it pointed to higher production and higher exports. Interestingly, the USDA raised its production estimates for India and Brazil. Data on export sales also showed an increase in Chinese imports.
The export sales report released by the U.S. Department of Agriculture on Thursday showed that in the week ended June 1, U.S. cotton export sales in 2022–23 increased by a net of 480,400 bales, a market-year high, an increase of 79% from the previous week, and an increase of 79% from the previous four-week average, which is a significant increase.
The USDA's monthly supply and demand report also raised its global trade forecast for 2023–24 by 900,000 bales on higher U.S. exports and Chinese imports. Projected spoilage in the Southwest has been reduced due to recent favorable rains, raising production from 1 million bales to 16.5 million bales. "
On the weather front, the U.S. government forecaster confirmed on Thursday that an El Nio phenomenon is in place.
"For the U.S., this will bring above-average rainfall over the growing season. Despite this, much of the region remains dry," Rose Commodity Group said in a report.
On the 9th, the CotlookA index was 94.15 cents per lb, down 70 points.
On the 9th, the imported cotton price index FCS grade was 97.26 cents/lb, down 70 points; FCM grade was 95.36 cents/lb, down 71 points; and FCL grade was 94.36 cents/lb, down 70 points.