Cotton producers in the US plan a seven per cent increase in plantings this year. Producers want to return some of the acreage back to cotton after bad weather at planting and low prices slashed acreage by 22 per cent last year to the smallest since 1983. All-cotton plantings are pegged at 9.19 million acres, compared with 8.58 million last year and 11.04 million acres in 2014.

Some tradersʼ estimates have ranged from 125,000 to 225,000 running bales in US upland export sales for the week ended January 28. Cotton futures retreated from an eight-session high to finish lower in spot March Wednesday, touching the low in the late going, while December settled higher.

Futures settlements during the reporting week ranged from 62.45 cents to 60.86 cents, basis March, and averaged 61.54 cents. May dipped 34 points to close at 62.41 cents, July eased off 11 points to 62.77 cents and December gained 21 points to 62.62 cents. World production is projected to increase 2.8 per cent, with consumption up a mere 0.2 per cent. Global stocks would amount to 81 per cent of consumption.

World ending stocks are estimated to decline five per cent following a seven per cent decline this season. An additional decline in world stocks is forecast for 2016-17.