Cotton Futures Face Friday Losses but Show Weekly Gain

Cotton futures ended Friday with losses between 37 and 45 points, finishing off a week that saw July futures rise by 167 points. In related markets, crude oil futures gained 39 cents per barrel, while the US dollar index increased by $0.202 to reach 99.370.

Speculative Position Adjustments

Recent Weekly CFTC data revealed that speculative funds reduced their net short position in cotton futures and options by 4,981 contracts as of April 22. This adjustment brings their total net short position to -37,437 contracts.

Export Sales and Market Performance

Export Sales data indicates that cotton bookings for the year have reached 10.859 million running bales (RB), which is 4% lower than last year at this time. However, this figure represents 107% of the USDA’s export target and is above the five-year average sales pace of 104%.

On April 24, The Seam reported that 10,709 cash bales were sold online at an average price of 64.3 cents per pound. Additionally, the Cotlook A Index rose by 175 points on Thursday, reaching 80.30 cents per pound. As of April 24, ICE cotton stocks remained stable, reporting a certified stock level of 14,478 bales. The USDA’s Adjusted World Price (AWP) increased by 145 points on Thursday to 54.88 cents per pound.

Cotton Futures Closing Prices

May 25 Cotton closed at 66.85, down 45 points.

Jul 25 Cotton closed at 68.8, down 37 points.

Dec 25 Cotton closed at 69.97, down 40 points.

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

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