Cotton futures are posting Friday losses at midday, despite a USDA reduction to the US output expectation as export business continues to disappoint. Contracts are down 140 to 147 points on the session. Crude oil is back down $2.64 per barrel on the session, with the US dollar index up $0.028.
USDA’s Crop Production report showed yield down 22 lbs to 776 lbs/acre, as production was cut by 410,000 bales to 13.2 million bales. Monthly WASDE data showed old crop US cotton stocks trimmed 50,000 bales to 4.15 million bales. New crop carryout was down 400,000 bales to 3.6 million bales due to the production changes and carryover.
