Cotton futures experienced losses on Friday, with December futures down 30 points, closing at 67.42 cents/lb, and a weekly decline of 104 points. The US dollar index rose by $0.233 to $97.555, while crude oil prices increased by $2.10 to $68.67/barrel.
The USDA’s monthly update indicated a 300,000 bale increase in US cotton exports, raising the total to 11.8 million bales, while US stocks decreased to 4.1 million bales. New crop production rose by 600,000 bales to 14.6 million, with harvested acreage increasing to 8.66 million acres, despite an 11 lbs/ac reduction in yield. Consequently, the projected carryout rose by 300,000 bales to 4.6 million.
As of Tuesday, the Commitment of Traders report showed 3,180 contracts added to the managed money net short position in cotton futures, totaling 46,090 contracts. The Cotlook A Index increased by 45 points to 78.60, while certified ICE cotton stocks decreased by 14 bales to 35,333 bales on July 10.
