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February Wraps Up with Cotton Prices Plummeting

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As the curtain falls on the bonus day for the month of February, the Cotton market sees prices drop significantly, hitting between 38 to 195 points lower. The old crop takes the lead once again in showcasing the more impactful slide, slipping below the $1 threshold, particularly affecting the in-delivery March contracts. December closes the month with a robust net gain of 231 points.

USDA’s FAS unveils that 39,966 RBs of cotton are destined for export, marking a new low for the marketing year. Weekly cotton exports tally up to 267,115 RBs, swiftly propelling the season total to 5.343 million RBs. Current commitments lag slightly, standing at 0.5% lower than last year’s tempo, with 10.477 million RBs locked in.

Cotton Market Indices and Statistics

The Cotlook A Index on 2/28 witnesses a substantial 370-point surge, landing at 105.25 cents/lb. On 2/27, The Seam reports the sale of 5,791 bales with an average price of 89.1 cents/lb. The AWP stands at 75.12 cents, awaiting an evening update. Meanwhile, ICE certified stocks as of 2/21 account for 997 bales.

For the Cotton futures market, the closings on 24th May see a downward trend: May 24 Cotton finishes at 99.57, marking a 151-point fall, Jul 24 Cotton at 97.77, down by 195 points, and Dec 24 Cotton concludes at 83.81, suffering a 47-point decline.

Disclaimer: As of the publication date, Alan Brugler does not hold any positions, either directly or indirectly, in the securities mentioned in this article. All information and data provided here are purely for informational purposes. For further details, refer to the Barchart Disclosure Policy.

Please note that the perspectives and opinions expressed in this piece belong solely to the author and may not necessarily align with those of Nasdaq, Inc.

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