Cotton Futures See Gains Amid Mixed Market Conditions

Cotton futures are trading significantly higher today, with contracts climbing between 133 to 144 cents. However, external factors weigh on the market; the US dollar index has risen by 529 points, while crude oil prices have decreased by 36 cents per barrel.

Speculators Increase Short Positions

According to the CFTC Commitment of Traders report, managed money speculative funds now hold a net short position of 7,034 contracts as of December 17. This reflects an increase to a net short of 29,257 contracts reported on Tuesday.

Recent Sales and Price Adjustments

The Seam reported online sales of 2,689 bales on December 20, with an average price of 57.36 cents per pound. Additionally, ICE cotton stocks remained unchanged on Friday at 20,113 bales of certified stocks. The Cotlook A Index dropped by 20 points on December 20, landing at 78.15 cents per pound. Meanwhile, the USDA Adjusted World Price (AWP) has been reduced by 113 points last week, now standing at 55.09 cents per pound, effective through Thursday.

Current Cotton Contract Prices

Mar 25 Cotton is at 69.5, up 144 points.

May 25 Cotton is at 70.58, up 141 points.

Jul 25 Cotton is at 71.45, up 133 points.

On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data provided here are for informational purposes only. For more details, 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.