Cotton Futures Show Mixed Performance Amid Rising Dollar and Oil Prices

Market Update: Modest Changes in Cotton Contracts

Cotton futures are experiencing steady trading on Tuesday. Nearby contracts are fluctuating between a loss of 1 point and a gain of 2 points. External factors are producing a mixed bag; the US dollar index has climbed 204 points, while crude oil prices are up by $0.66 per barrel.

November Exports Surge

In a positive development, November cotton exports (excluding linters) reached 658,655 bales. This figure marks a 14.92% increase from October and an impressive 18.07% rise compared to last year.

Traders Adjust Positions

Latest data from the Commitment of Traders indicates that speculative funds have further increased their net short positions. As of December 31, they added 4,162 contracts, bringing their total to 39,682 contracts.

Sales and Stock Numbers Remain Steady

The Seam reported online sales of 14,720 bales on January 6, with an average price of 61.67 cents per pound. Additionally, ICE cotton stocks remained unchanged on Monday at 20,113 bales of certified stocks. The Cotlook A Index dropped by 100 points on January 6, settling at 78.05 cents per pound. Furthermore, the USDA Adjusted World Price (AWP) increased by 48 points from the previous week, now standing at 55.03 cents per pound.

Current Cotton Futures

Mar 25 Cotton is at 68.67 cents per pound, down 1 point.

May 25 Cotton is at 69.84 cents per pound, up 2 points.

Jul 25 Cotton is at 70.86 cents per pound, up 1 point.

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.