Cotton Futures Drop While Crude Oil Prices Rise: Market Update

Cotton futures experienced declines on Thursday, closing with losses ranging from 49 to 69 points. In contrast, crude oil prices rose by $2.33 per barrel, and the US dollar index increased by $1.05, reaching 100.485.

USDA Export Sales Highlight

The USDA’s Export Sales report revealed that total cotton sales for the 2024/25 crop year reached 65,764 running bales (RB) for the week ending on May 1. Of this total, 37,376 RB were designated for the new crop. Vietnam emerged as the leading buyer for old crop cotton, purchasing 30,500 RB, while Mexico took the lead for new crop cotton with an acquisition of 30,700 RB. This week’s total sales marked the lowest figure since the week of October 3. On a positive note, shipments peaked at an 8-week high of 394,872 RB, with Vietnam receiving 117,300 RB and Pakistan 88,800 RB.

The Seam Auction Results

In Wednesday’s online auction conducted by The Seam, 1,350 bales were sold at an average price of 62.31 cents per pound. Additionally, the Cotlook A Index dropped by 55 points on Wednesday, settling at 79.45. As of May 7, ICE cotton stocks increased by 3,088 bales, bringing certified stocks to a total of 17,137 bales. The USDA’s Adjusted World Price (AWP) also saw a decline, falling by 13 points on Thursday to reach 54.81 cents per pound.

Cotton Futures Closing Prices

Jul 25 Cotton closed at 66.69, down 69 points.

Oct 25 Cotton closed at 68.91, down 49 points.

Dec 25 Cotton closed at 68.75, down 50 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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