Cotton prices are showing gains at midday on Monday of 27 to 65 points, pulling back off of some early strength. Crude oil prices are trading with gains of $1.22/barrel. The US dollar index is back up $1.447 to $101.615.

The meeting between US and China trade reps saw progress, as an announcement overnight showed a drop in tariffs by 115% for each country for 90 days. The US dropped their rate to 30% on Chinese goods, while China cut theirs to 10%. 

USDA’s annual Cotton Ginnings report showed a total of 14.075 million RB ginned and total 2024 production at 14.383 million bales (including pima). The old crop balance sheet saw the export figure back up 200,000 bales, cutting the carry out by the same to 4.8 million bales. New crop stocks are seen at 5.2 million bales. 

The Friday online auction from The Seam showed sales of 1,255 bales at an average price of 71.50 cents/lb. The Cotlook A Index was down 70 points on Friday at 78.25. ICE cotton stocks were up 5,529 bales on May 9 on new certifications, with a certified stocks level of 22,250 bales. USDA’s Adjusted World Price (AWP) was back down 13 points last Thursday to 54.81 cents/lb. 

Jul 25 Cotton  is at 66.88, up 27 points,

Oct 25 Cotton  is at 69.45, up 65 points,

Dec 25 Cotton  is at 69, up 33 points