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    Cotton Marketing News

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    Brittany Etheridge
    The document discusses the cotton market and recent trends: - USDA has reduced global demand/use projections for cotton due to COVID-19, but their May projections predicted higher worldwide use and US exports for 2020. - US acreage and production for 2020 are currently projected to be similar to 2019 levels, though analysts expected lower planting intentions. - Cotton sales to China increased over the past month but have since cooled, and there are concerns China may not follow through on all of its purchases. - The market is hindered by reduced demand and higher expected stocks, and prices above 60 cents face resistance for now, with support at 54 and 52 cents. Future prices depend on production and demand trends.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Cotton Marketing News

    Uploaded by

    Brittany Etheridge
    39 views1 page
    The document discusses the cotton market and recent trends: - USDA has reduced global demand/use projections for cotton due to COVID-19, but their May projections predicted higher worldwide use and US exports for 2020. - US acreage and production for 2020 are currently projected to be similar to 2019 levels, though analysts expected lower planting intentions. - Cotton sales to China increased over the past month but have since cooled, and there are concerns China may not follow through on all of its purchases. - The market is hindered by reduced demand and higher expected stocks, and prices above 60 cents face resistance for now, with support at 54 and 52 cents. Future prices depend on production and demand trends.

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    Cm n 05262020

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    Cm n 05262020

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    The document discusses the cotton market and recent trends: - USDA has reduced global demand/use projections for cotton due to COVID-19, but their May projections predicted higher worldwide use and US exports for 2020. - US acreage and production for 2020 are currently projected to be similar to 2019 levels, though analysts expected lower planting intentions. - Cotton sales to China increased over the past month but have since cooled, and there are concerns China may not follow through on all of its purchases. - The market is hindered by reduced demand and higher expected stocks, and prices above 60 cents face resistance for now, with support at 54 and 52 cents. Future prices depend on production and demand trends.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    39 views1 page

    Cotton Marketing News

    Uploaded by

    Brittany Etheridge
    The document discusses the cotton market and recent trends: - USDA has reduced global demand/use projections for cotton due to COVID-19, but their May projections predicted higher worldwide use and US exports for 2020. - US acreage and production for 2020 are currently projected to be similar to 2019 levels, though analysts expected lower planting intentions. - Cotton sales to China increased over the past month but have since cooled, and there are concerns China may not follow through on all of its purchases. - The market is hindered by reduced demand and higher expected stocks, and prices above 60 cents face resistance for now, with support at 54 and 52 cents. Future prices depend on production and demand trends.

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    REPRESENTING COTTON GROWERS THROUGHOUT ALABAMA, FLORIDA, GEORGIA, NORTH CAROLINA, SOUTH CAROLINA, AND VIRGINIA

    COTTON MARKETING NEWS


    Volume 18, No. 8 May 26, 2020

     USDA has sharply reduced World demand/Use in recent months


    Sponsored by due to COVID-19. Will monthly reports for the remainder of this
    marketing year continue to slide or will we see some recovery?
     The May reports were the first estimates (non-survey based) for
    Be Hopeful and Patient but Also Plan Ahead the 2020 crop year. The May projections were for higher World
    Use and higher US exports for 2020. Will such better numbers
    Prices (July futures) continue in a range of mostly 54 to 59 cents. continue in future reports?
    We’ve seen a decent uptrend since the most recent low of 53½ on  US acreage and production for 2020 are currently projected to
    May 5 and, with a few hiccups, since the low near 48 on April 1. be not much different than 2019. Most expected the March
    estimate of planting intentions to be lower than it was. The first
    The market (July) today had a chance at near 60 cents but fell back estimate of actual acres planted will be out June 30th.
    and closed just above 58 cents. Now, today’s news might be old
    news by the time you read this but the point is—this could be Sales to China have increased over the past month. Huge sales of
    further evidence that 59 to 60 cents might be the wall we bang over 400,000 bales (after weeks of very poor sales) were reported
    our head against for now. for the week ending April 23rd. Sales have since cooled off a bit
    but still at a relatively good level. Shipments have been steady at
    about 55,000 bales weekly.

    As of May 14th, total upland sales to China were 3.21 million bales
    but shipments were only 1.42 million bales. There are concerns
    being raised and uncertainty whether or not China will follow
    through on its sales and the pace of shipments. Shipments for the
    remainder of the marketing year would need to average roughly
    162,000 bales—almost 3x the current rate and time is running out.

    I hope I’m wrong and that sooner rather than later we break the
    resistance at 60 cents. But also, it appears the market should have
    support—2 levels at 54 cents and again at 52 cents.

    Price is hindered by reduced and uncertain Use and increased


    stocks due to this lower demand. This will also increase stocks
    going in to the 2020 crop marketing year. Prices for the 2020 crop
    depend on many factors including US and World production and
    demand/Use. Will Use rebound? USDA is projecting it to.

    As of May 14th, export sales totaled 17.34 million bales—116% of


    USDA’s projection for the 2019 crop marketing year. Shipments Let’s hope not, but if 2020 turns out to be another year below 60
    totaled 11.56 million bales—77% of the projection. As of May cents, producers should hone their understanding of the Loan,
    14th, 11 weeks remain in the marketing year. Shipments must LDP/MLG and be prepared to evaluate as part of a marketing plan.
    average 313,000 bales per week to reach the projection. For the
    4 weeks ending May 14th, shipments averaged 285,000 bales.
    Cotton Economist- Retired
    All eyes will be on several things going forward and prices will take Professor Emeritus of Cotton Economics
    direction based on what happens.
     Will shipments be sufficient to meet the 15 million bale
    projection? If not, the result will be higher US ending stocks.

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