No significant news in cotton today. But new crop farm bids are now so near loan rates that it didn’t take but a modest deterioration in crop ratings to weaken the case for further deterioration in cotton futures ahead of harvest.
Yesterday’s NASS report on cotton conditions shows the 15 state average of good to excellent condition by acreage is down 2% from last week to 50%. That compares to a year-ago reading for the week at 46% good to excellent. Poor to very-poor acreage also increased 2% to 16%, compared to 13% this week last year. Progress is on par with the average with 88% setting bolls.
Given the drop in high-quality ratings and the rise in those in the lowest categories, the report looks supportive of autumn-winter ICE futures.