ICE Futures were sharply lower Friday as USDA surprised the trade with higher crop data. The 2018 crop was increased from 18.50 million to 19.20 million. The government increased beginning stocks 400,000 bales, increased the crop by 740,000 bales, but also increased exports by 500,000 bales.
Thus, the net result, a carryout jump of 600,000 bales, moving from July’s 4.0 million to the current to 4.60 million. World ending stocks did fall some 740,000 bales, from 77.84 million to 77.10 million
The currency value loss of Turkey’s lira was also a bearish factor. Turkey’s currency has been in something of a free-fall since the first of the year amid poor economic policies of President Erdogan. In fact, the Lira has posted an all-time low versus the U.S. dollar.
Estimated volume was 35,000.
December cotton settled 8523 down 203, March 19 was 8571 down 198, and December 19 closed 8000 down 79 points.