USDA: US Cotton Planting Area Expanded By 19% Over The Same Period Last Year.

On Wednesday, the United States Department of agriculture raised the estimated domestic cotton acreage to 10 million 900 thousand acres, which is regarded as a bad thing by the market.

In March, the US Department of Agriculture reported that the planting area would be 10 million 510 thousand acres.

Cotton prices are strong and soil moisture is good, encouraging farmers to grow cotton.

The new planting area forecast is 19% larger than that of the 9 million 150 thousand acre in 2009.

Sharon Johnson, senior cotton analyst at Atlanta first Capitol group, said the market sees the report as empty.

After the release of the report, ICE cotton prices slipped to the lowest point of the day.

The most active December contract fell to 77.12 cents, falling 0.48 cents at 9:45 a.m. and trading at 77.65 cents / pound.

The United States Department of Agriculture reports that all areas will be expanded, except for Lewis anana, where the area is still at its lowest level last year.

Dezhou is the largest cotton growing state in the United States this year.

The planting area of upland cotton is 10 million 700 thousand acres, larger than that of 10 million 320 thousand acres in 2009.

Pima cotton has an area of 209000 acres, larger than 141400 acres last year.

A good harvest will come from the sales of the fund.

Analysts say the cotton market is likely to be in a downward trend after analysts expect us cotton production to rise.

Johnson said there is no doubt that the US Department of agriculture will increase the US output in July.

In the south of the United States, cotton growth is almost perfect, so the USDA's expected output target will easily be achieved.

In the week ending June 27th, 62% of American cotton was rated as good - excellent.

Analysts point out that the sell-off of the fund may put more pressure on the cotton market.

Wednesday is the end of June and the two quarter of this year, when fund managers are used to shorting their profits in such a day.