Cotton futures are 15 to 17 points lower this morning after they were 5 to 21 points lower in the front months on Tuesday. The USDA showed the 2017 cotton harvest in TX at 22% complete with GA 11% harvested both ahead of their averages. The Crop Progress report indicated LA was down 25 points over the week, with TX falling 17 points and MS down 12. The Cotlook A index for October 2 was down 50 points from the previous day at 78.55 cents/lb. The ICAC is estimating 2017/18 world cotton production @25.4 MMT, up 10% from last year on higher prices and better price ratios vs. other field crops. The 2016/17 ending stocks were down 140,000 MT to 18.55 MMT, but are currently expected to increase to 18.7 MMT in the 2017/18 campaign. ICAC foresees further reductions in Chinese stocks, while world ex-China inventory expands. World mill use is expected to grow in a lower price environment.

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