Cotton Futures Show Incremental Gains Amidst Mixed Market Conditions
December Futures Tumble While Export Sales Improve
Cotton futures recorded gains ranging from 12 to 24 points on Friday, despite December contracts ending the week down by 122 points. In the broader market, mixed results were seen with crude oil prices dipping $1.27 per barrel and the US dollar index experiencing a decrease of 352 points.
Strong Export Sales Offer a Silver Lining
Data from Export Sales highlighted a significant increase in bookings for the week ending October 10, which reached 159,769 running bales (RB), marking a 78.3% rise from the previous week. Vietnam emerged as the leading buyer, purchasing 47,700 RB, while Pakistan acquired 45,600 RB. However, export shipments were only at 57,834 RB during the same week, representing a yearly low, with 16,200 RB heading to Pakistan and 10,600 RB to Mexico.
Managed Money Increases Short Positions
The latest Commitment of Traders report indicated that managed money in cotton futures and options increased their net short positions by 741 contracts, bringing the total to 12,664 contracts as of Tuesday.
Market Pricing Insights
The Seam reported online sales of 782 bales on October 16, averaging 68.67 cents per pound. On the same day, ICE cotton stocks remained steady at 174 bales of certified inventory. The Cotlook A Index rose by 50 points on October 16, reaching 82.80 cents per pound. In contrast, the USDA Adjusted World Price (AWP) was reduced by 117 points on Thursday, settling at 59.24 cents per pound.
Current Cotton Prices
Mar 25 Cotton is trading at 73.09, reflecting an increase of 24 points.
May 25 Cotton is priced at 74.53, up by 22 points.
Jul 25 Cotton stands at 75.47, gaining 21 points.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are strictly for informational purposes. To learn more, please review the Barchart Disclosure Policy here.
The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
