Cotton Futures Dip Amid Mixed Market Signals and Export Growth

Cotton futures experienced a decline on Thursday, with contracts closing down between 30 to 50 points for nearby futures. The downturn coincided with a $0.90 per barrel drop in crude oil prices, while the US dollar index rose by $0.168 during the trading day.

USDA Export Sales Report Highlights Strong Week

The USDA’s Export Sales report indicated that 271,814 running bales (RB) of upland cotton were sold in the week ending March 6, marking the strongest performance in three weeks. This sales figure is more than triple the volume recorded during the same week last year. Leading the purchases, Vietnam bought 112,700 RB, with Turkey acquiring 89,300 RB. Shipments during the week also soared to a marketing year high of 403,461 RB, with Vietnam again being the primary destination at 126,700 RB, followed by Pakistan at 101,600 RB.

Current Export Commitments and Price Movements

Total export commitments for US cotton currently stand at 10.124 million RB, reflecting a 5% decrease from last year. This figure represents 98% of the USDA’s export projection and exceeds the average sale pace of 1% for this week.

In the latest online auction held on Wednesday, The Seam reported that 6,631 bales were sold at an average price of 61.51 cents per pound. The Cotlook A Index fell by 10 points on March 12, landing at 77.85 cents per pound. Additionally, ICE cotton stocks remained stable on Wednesday, with certified stocks recorded at 14,488 bales. Notably, the USDA raised this week’s Adjusted World Price (AWP) by 188 points to 53.76 cents per pound.

Price Closures for Cotton Futures

Below are the latest closing prices for cotton futures:

• May 25 Cotton: closed at 66.53, down 45 points
• Jul 25 Cotton: closed at 67.70, down 46 points
• Oct 25 Cotton: closed at 69.57, down 35 points

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Information contained herein is for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.

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