Cotton Futures Trade Mixed Amid Stable USDA Stocks Report

Cotton futures experienced a slightly mixed trading session on Tuesday, with contract variations showing increases of up to 2 points and decreases of 9 points across the front months. Outside markets provided some support, as crude oil futures rose by 59 cents per barrel and the US dollar index declined by $0.598 during the day.

USDA Cotton Balance Sheet Remains Unchanged

This morning’s update to the USDA cotton balance sheet revealed no alterations on the US side, maintaining stocks at 4.9 million bales. The average farm price fell by 50 points, settling at 63 cents per pound. According to the Cotton Ginnings report, another 162,950 running bales (RB) were ginned in February. This brings the season’s total to 14.124 million RB, a notable 20.23% increase compared to the same period last year.

Global Cotton Stocks Adjusted

On the global side of the balance sheet, 2024/25 stocks decreased by 80,000 bales to 78.33 million bales. The reduction was attributed to a 200,000 bale drop for Brazil due to increased exports, while Australian stocks rose by 100,000 bales.

Market Activity and Auction Results

The online auction held by The Seam on Monday reported the sale of 4,756 bales, with an average price of 61.17 cents per pound. In addition, the Cotlook A Index increased by 75 points on March 10, reaching 77.70 cents per pound. ICE cotton stocks remained steady on the same date, with certified stocks at 14,488 bales. Notably, the USDA cut its Adjusted World Price (AWP) last Thursday by 201 points, now set at 51.88 cents per pound.

Closing Prices for Cotton Futures

May 25 Cotton closed unchanged at 66 cents.

Jul 25 Cotton finished at 67.19 cents, down 2 points.

Oct 25 Cotton saw a closing price of 69.2 cents, up 9 points.

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

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