Mixed Signals in Cotton Futures Market as Prices Fluctuate

Market Overview and Price Changes

Cotton futures showed a mixed performance at midday. As of now, March contracts are up by 2 points, while other contracts have seen declines ranging from 4 to 8 points. Factors outside the cotton market have provided some support, with the US dollar index remaining steady and crude oil prices increasing by $1.39 per barrel.

Trader Activity and Commitments

Recent data from the Commitment of Traders indicates that managed money has reduced their net short positions in cotton futures and options. As of December 3, they cut 3,618 contracts, bringing their total net position to 16,383 contracts as of last Tuesday.

Sales and Inventory Updates

The Seam reported 1,251 bales of online cotton sales on December 6, with an average price of 53.32 cents per pound. Additionally, the ICE recorded 2,233 bales of cotton stocks on Friday, leading to a total of 16,696 bales in certified stocks. The Cotlook A Index decreased by 25 points on December 6, settling at 81.35 cents per pound. The USDA also raised the Adjusted World Price (AWP) by 21 points last week, now at 57.74 cents per pound.

Current Futures Prices

Mar 25 Cotton is priced at 70.13 cents, reflecting a 2-point gain.

May 25 Cotton is down 8 points, currently at 71.27 cents.

Jul 25 Cotton is also down 4 points, standing at 72.37 cents.

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.
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