Cotton Futures Decline Amid Mixed Market Signals

Friday trade sees cotton futures experiencing losses of 6 to 10 points. Meanwhile, the outside markets provide some positive indicators, with the US dollar index decreasing by 767 points and crude oil prices rising by 27 cents per barrel.

Export Sales Show Declining Trend

Recent export sales data reveals total cotton shipments at 2.411 million running bales (RB), reflecting a 15% drop compared to last year. This represents only 23% of the USDA’s export forecast, falling short of the average shipping pace for this time of year, which is 27%. Altogether, total shipped and unshipped commitments stand at 7.207 million RB, down 11% year-over-year, making up 68% of the USDA’s projection and trailing the 75% average pace.

Market Updates and Adjustments

As of December 19, The Seam reported online sales of 7,902 bales, with an average price of 58.15 cents per pound. ICE cotton stocks remained steady at 20,113 certified bales as of Thursday. Additionally, the Cotlook A Index dropped 50 points on December 19, settling at 78.35 cents per pound. The USDA has reduced the Adjusted World Price (AWP) by another 113 points, bringing it down to 55.09 cents per pound, valid through the following Thursday.

Current Cotton Futures Prices

Mar 25 Cotton: 67.81, down 10 points

May 25 Cotton: 68.94, down 9 points

Jul 25 Cotton: 69.89, down 9 points

On the date of publication, Austin Schroeder did not have any direct or indirect positions in the securities mentioned in this article. All information and data provided are for informational purposes only. For more details, please review the Barchart Disclosure Policy here.

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