AFB Cotton Close: Rocked by Ever Increasing Stocks
Cotton was rocked by ever increasing world stocks. The 2011/12 production is expected to exceed use by 6.73 million bales. That will push stocks to 13.75 million bales. Smaller U.S. plantings are expected to see a million acres more harvested than in 2011, with production up 1.43 million bales to 17 million. U.S. stocks are projected to rise to 4.9 million bales. Limit down moves left the cotton market dark red. December fell to 79.37 cents and further losses are probable.
|Spot Price, Grade 41 Staple 34:||Memphis down 400 at 7532|
|Greenwood down 400 at 75|
|New York Futures:||July||down||400||at||8182|
This week’s LDP rate for cotton is
|The estimate for next week is||0 cents|
The ICE Dec and Mar contracts gave back 160 and 87 points on the week, respectively, as last week’s inversion between the two contracts gave way to partial carry. Well,