Cotton Futures Surge Despite Mixed Market Conditions

Cotton futures experienced significant gains on Wednesday, with increases ranging from 126 to 181 points across most contracts. This uptick occurred despite unfavorable trends in other markets, notably a decline in crude oil futures, which fell by $2.03 per barrel, and a rise in the US dollar index, which increased by $1.015 to reach 99.705.

The market’s upward momentum was partly fueled by discussions surrounding a potential easing of trade tensions with China, although no official announcements have been made to confirm this speculation.

The Seam reported the sale of 2,639 cash bales online on April 22, at an average price of 66.93 cents per pound. In a related update, the Cotlook A Index increased by 50 points on Tuesday, now sitting at 78.10 cents per pound. Additionally, ICE cotton stocks remained stable on April 22, with certified stocks recorded at 14,478 bales. The USDA’s Adjusted World Price (AWP) rose by 33 points last Thursday, reaching 53.43 cents per pound.

Cotton Futures Closing Prices

May 25 Cotton closed at 68.75, a rise of 171 points.

Jul 25 Cotton closed at 69.03, gaining 181 points.

Dec 25 Cotton closed at 69.97, an increase of 126 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 intended solely for informational purposes. For further details, please review the Barchart Disclosure Policy here.

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