Cotton Futures Surge as Speculative Positions Shift

Cotton futures experienced a significant rally on Friday, closing up between 68 to 90 points. For the week, May futures rose by 130 points. Additionally, crude oil futures increased by $0.64 per barrel, which helped bolster market support. Meanwhile, the US dollar index declined by $0.155 on the day.

The large managed money spec funds in cotton futures and options continued to adjust their positions, reducing their previously record net short position by 3,547 contracts as of Tuesday. On March 11, the net short position stood at 76,410 contracts.

Market Insights

In the latest auction from The Seam on Thursday, a total of 5,722 bales were sold at an average price of 66.35 cents per pound. The Cotlook A Index saw an uptick of 100 points as of March 13, reaching 78.85 cents per pound. Furthermore, ICE cotton stocks remained stable with certified stocks holding steady at 14,488 bales as of March 13. Notably, the USDA raised this week’s Adjusted World Price (AWP) by 188 points, bringing it to 53.76 cents per pound.

Cotton Closing Prices on March 13

May 25 Cotton closed at 67.37, up 84 points.

July 25 Cotton closed at 68.60, up 90 points.

October 25 Cotton closed at 70.25, up 68 points.

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 are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

More news from Barchart

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