Cotton Futures Decline Amid Mixed Market Signals

Cotton futures are lower at midday on Wednesday, with contracts showing a decline of 15 to 29 points. Meanwhile, crude oil futures have increased by $0.46 per barrel. The US dollar index also rose, up $0.513 today. Investors are closely watching the conclusion of the two-day Federal Reserve meeting, which is expected to result in no changes to interest rates this month.

Cotton Acreage Estimates and USDA Report

S&P Global forecasts that the 2025 US cotton acreage will reach 10.2 million acres, marking a decrease of 250,000 acres from prior estimates in January and a million acres lower than last year’s total if realized. The USDA’s official survey will provide further insights in the March Intentions report, scheduled for release at the end of the month.

Market Activity and Pricing Trends

The recent online auction by The Seam reported the sale of 6,604 bales, with an average price of 65.27 cents per pound. Additionally, the Cotlook A Index declined by 25 points to 79.00 cents per pound as of March 18. ICE cotton stocks remained steady on the same day, holding firm at 14,488 certified bales. Notably, the USDA raised the weekly Adjusted World Price (AWP) by 188 points last Thursday, bringing it to 53.76 cents per pound.

Current Cotton Futures Prices

May 25 Cotton: 66.18, down 29 points

Jul 25 Cotton: 67.72, down 16 points

Dec 25 Cotton: 69.41, down 15 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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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