Analysts Predict Bullish Outcome for Cotton Futures
Embroiled in a frenzy of economic activity, Tuesday saw cotton futures surge with triple-digit gains in old crop contracts. Excitement was palpable as new crop futures displayed mixed but mostly upward trends within a ten-point radius of UNCH. Market analysts eagerly await Thursday’s Planting Intentions report, anticipating a display of between 10.4m and 11.3m acres earmarked for cotton planting in the 2024/25 season. Significantly, the average estimate hovers at a sizeable 11.3m acres, reflecting a substantial 1.1m acre surge from the previous year. This projection outshines USDA’s Outlook Forum assumptions from February by a whopping 300k acres.
Cotlook A Index and AWP Point to Market Dynamics
The Cotlook A Index for 3/21 witnessed an 85-point plunge, settling at 97 cents flat. Simultaneously, the AWP underwent a revision, plummeting by 360 points to 72.50 cents per pound. This adjustment is expected to hold sway over farm program considerations until the following Thursday. Additionally, ICE certified stocks for the period ending 3/20 were reported at a robust 41,756 bales.
Noteworthy Cotton Prices
May 24 Cotton is currently at 93.62, marking a substantial 160-point upswing. Meanwhile, Jul 24 Cotton stands at 93.97, boasting a noteworthy 142-point surge. Dec 24 Cotton makes a modest advance at 84.13, reflecting a 12-point increase.
On the date of publication, Alan Brugler had no positions in any of the securities mentioned in this article, whether directly or indirectly. The information provided in this article serves exclusively for informational purposes. For further details, please consult the Barchart Disclosure Policy.
The opinions and perspectives articulated in this piece are those of the author alone and may not align with the views of Nasdaq, Inc.
