On Tuesday, the price of US cotton futures rose by 2.17% to $116.05 per metric ton over the past 24 hours and jumped further by 2.06% in the Asian afternoon session.
The soft commodity has been rallying since Friday due to an extreme cut to the production estimates by the US Department of Agriculture (USDA) ‘s National Agricultural Statistics Services (NASS).
According to its latest crop output report, there is an increase in US abandonment, with harvested acres at 7.13 million, down by 1.42 million in July.
Consequently, cotton yield was slashed by 24.00 pounds per acre to 846.00 pounds per acre, taking the production to 12.57 million bales, declining by 2.93 million.
Subsequently, the USDA’s World Agricultural Supply and Demand Estimates (WASDE) forecasted the US ending stocks to plunge by 600,000 bales to a very snug 1.80 million stat bales or 480.00 pounds, with a sharp 2.00 million bale cut to exports.
Also, the update to the monthly WASDE report showed that cotton’s worldwide figures are also tightening, with stocks down by 1.49 million bales to 82.77 million driven by the US production cut.
Crop conditions improved
In addition, the crop conditions across Arkansas continue to show late-season improvement.
Cotton is rated 71.00% good-to-excellent, with 98.00% setting bolls, and 5.00% of them are opening.
Similarly, soybeans are rated 71.00% good-to-excellent, with 90.00% setting pods, and 11.00% coloring.
Besides, rice grains are rated 79.00% good-to-excellent, 57.00% of the crop is headed.
Likewise, peanuts are rated 84.00% good-to-excellent, with 99.00% pegging.
Meanwhile, corn harvest is underway with 1.00% or the crop harvested, 84.00% dented, and 39.00% mature.
Furthermore, the second cutting of hay is 82.00% complete, and 8.00% of alfalfa hay is rated good.
Moreover, vegetable crops are rated 66.00% good-to-excellent.
