Cotton Market 61 to 82 Points Lower

Cotton futures are trading 61 to 82 points lower this morning in “buy the rumor, sell the fact” action following the USDA reports. The dollar is weaker vs. the Japanese yen, and the Hong Kong stock market is sharply lower. They posted gains of 16 to 31 points on Friday, helping to push the wk/wk gains to 49 points in nearby Dec. The Cotton Ginnings report showed that the MY total cotton ginned is up to 6.249 million (480-lb) bales. Cotton yield was down 34 to 799 lbs per acre in the Crop Production report, 7.5% lower than last year. The ending stocks estimate was reduced to 6.1 million bales from 7 million in the October WASDE report. USDA’s world cotton ending stocks figure tightened to 80.8 million bales from 83.69 million in October. Managed money spec funds expanded their CFTC net short position for cotton by 150% wk/wk, and as of 11/5 they were net short 15,247 contracts of futures and options. The Cotlook A Index for 11/7 was down by 25 points, to 74.70 cents/lb. The AWP is now 56.63 cents/lb through Thursday.

--provided by Brugler Marketing & Management

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