RSS
Twitter
Linked In
News In
News
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

World stocks cut steadies cotton market, after US yield upgraded to record high

Twitter Linkedin eCard

The US issued a surprise upgrade to its forecast for cotton stocks, but cut its estimate for world inventories nonetheless, limiting the pressure on New York futures in the fibre.

 

The US Department of Agriculture, in its monthly Wasde crop report, raised by 300,000 bales to 6.10m bales its forecast for domestic cotton inventories at the close of 2017-18.

 

The upgrade in the stocks estimate, to a nine-year high, contrasted with investor expectations of a cut to the figure, to 5.6m bales.

 

And it reflected an increased estimate for production, pegged at an 11-year high of 21.38m bales, despite some ideas of crop damage from hurricanes Harvey and Irma.

 

“A smaller crop in the west [of the US cotton belt] is more than offset by gains in the Southwest and other regions,” the USDA said, upgrading its estimate for the average US cotton yield this year by 11 pounds per acre to a record 900 pounds per acre.

 

Price upgrade

 

Nonetheless, the USDA raised by 3 cents a pound to 60-66 cents a pound its forecast for US farmgate cotton values in 2017-18, “reflecting prices to date”, which have found support in a strong pace of orders for US exports.

 

Separate USDA data on Thursday showed US cotton export commitments – that is, sales and completed shipments combined – at 8.91m bales for this season, up 36% year on year.

 

And at a global level, the USDA cut its forecast for inventories by 1.50m bales to 90.9m bales, a far bigger cut than expected by investors, who had pencilled in a 91.6m-bale figure, according to a market poll.

 

Demand upgrades

 

The extent of the downgrade to the world stocks figure reflected in part historical revisions for estimates for stocks in the likes of Argentina and Uzbekistan, but also increased consumption estimates for this season.

 

“World 2017-18 consumption is forecast 1.2m bales higher than last month, with increases of 300,000-550,000 bales in the forecasts for Uzbekistan, China, and Bangladesh,” the USDA said.

 

“Higher global production in several major producers is more than offset by higher use.”

 

Cotton futures for December stood 0.5% lower at 68.29 cents a pound in late deals in New York.

Twitter Linkedin eCard
Related Stories

Evening markets: Argentine moisture slips up soymeal rally. But weather revives wheat

Meal futures dip, a little, for the first time in 12 sessions. But wheat futures gain, as drought spreads in Kansas, and cold reaches Europe

US farmers to raise sowings of most major crops this year - but not corn, soybeans

US officials, in long-awaited 2018-19 estimates, see rises in spring wheat and cotton seedings. But soybeans will not spurt ahead of corn as many investors forecast

USDA forecasts for US 2018 crop sowings - in numbers

Long-awaited estimates for US plantings, how they change on last year’s area, and on so-called "baseline" forecasts unveiled in November

Morning markets: Ag futures ease, as traders await key 2018 forecasts

US officials will later on Thursday issue the first of a series of forecasts for US crops in 2018-19. Markets are cautious in the mean time
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069