Pressure Mounts on Cotton Futures as Dollar Surges

Market Update: Cotton Prices Dip Amid External Challenges

Cotton futures faced pressure as the dollar strengthened, leading to a decline in contracts during the Tuesday session. Prices closed down between 72 to 115 points. The market’s struggles were compounded by lower crude oil futures, which dropped 7 points, while the US dollar index saw an increase of 408 points for the day.

According to the weekly Crop Progress report from NASS, cotton harvest is making good progress, reaching 71% completion as of November 10. This figure is 8 percentage points above the five-year average for this time of year.

The Seam reported 824 bales of online cotton sales on November 11, with an average selling price of 66.61 cents per pound. Additionally, ICE cotton stocks remained steady on Monday, holding at 174 bales of certified stocks. The Cotlook A Index decreased by 10 points on November 11, now standing at 83.25 cents per pound. The USDA Adjusted World Price (AWP) also fell last week, dropping 58 points to 57.96 cents per pound.

Mar 25 Cotton closed at 71.07, down 113 points.

May 25 Cotton closed at 72.4, down 115 points.

Jul 25 Cotton closed at 73.65, down 113 points.

On the date of publication,
Austin Schroeder
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.