Cotton futures hold midday gains as USDA pegs acreage at 9.85 million
AI Market Summary
USDA\'s June Acreage report showed US cotton plantings at 9.85m acres, above expectations, a supply-negative input. However, crop conditions deteriorated (good/excellent down to 48%, with notable weakness in Texas), partially offsetting the acreage surprise and supporting futures\' modest gains. Macro crosscurrents (softer crude, firmer USD) were present but secondary, leaving cotton driven mainly by shifting supply&-condition signals.
Impact level
● Medium
Affected assets
NCCOCOTTON2USD/USDT+0.31%
AI Insight · NCCOCOTTON2USD/USDTAI Insight
● Neutral
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USDA’s June Acreage report put U.S. cotton plantings at 9.85 million acres, above the 9.6 million expected by the market and the March estimate. Crop Progress showed planting was 97% complete, while 37% of the crop was squared and 9% was setting bolls, with good/excellent ratings slipping to 48% and Texas conditions weakening. ICE cotton futures traded higher, with the July contract up 34 points at 72 cents per pound and the December contract up 70 points at 77.15 cents per pound. Crude oil and the U.S. dollar index moved as well, but neither dictated cotton’s direction.
