Cotton Prices Open Higher as Crop Planting Aligns with Averages

Cotton prices rose between 11 to 28 points at the start of Tuesday’s trading session. Futures rebounded from midday lows, though they still closed lower, showing a decline of 14 to 55 points on Monday. In related markets, crude oil futures fell by $1.30 per barrel, while the US dollar index dropped significantly by $0.999 to settle at 98.044.

US Cotton Crop Progress

The National Agricultural Statistics Service (NASS) reports that as of April 20, 11% of the US cotton crop has been planted, which is now in line with the five-year average pace.

Market Activity and Prices

The Seam announced the sale of 5,685 cash bales online on April 17, with an average price of 62.50 cents per pound. Additionally, the Cotlook A Index increased by 35 points last Friday, now standing at 77.60 cents per pound. As of April 17, ICE cotton stocks were steady, maintaining a certified stock level of 14,478 bales. The USDA’s Adjusted World Price (AWP) also saw an increase of 33 points last Thursday, reaching 53.43 cents per pound.

Current Futures Prices

For the cotton futures contracts:

• May 25 Cotton closed at 65.77, down 55 points, but is currently up 28 points.
• July 25 Cotton closed at 66.82, down 31 points, currently rising by 27 points.
• December 25 Cotton settled at 68.3, down 14 points, and has now increased by 15 points.

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