Cotton Prices Experience Weakness Early This Week

Cotton market trends indicate a downturn early on Monday, with futures dropping 56 to 77 points. On Friday, the futures showed mixed results: the front-month May contract fell by 58 points, while other contracts gained between 1 to 23 points. Nonetheless, May is still up 253 points from the prior week. In related markets, crude oil futures increased by $1.44 per barrel. Additionally, the US dollar index demonstrated further weakness, losing $0.960 to settle at $99.645.

CFTC data released on Friday afternoon revealed that speculators in cotton futures and options reduced their net short positions by 10,943 contracts as of April 8, resulting in a total of 55,691 contracts.

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The Seam reported 1,207 cash bales sold on April 10 at an average price of 56.56 cents per pound. Furthermore, the Cotlook A Index increased by 100 points on Thursday, reaching 78.55 cents per pound. ICE cotton stocks remained unchanged as of April 10, with 14,488 bales currently certified. In contrast, USDA’s Adjusted World Price (AWP) declined by 212 points to 53.10 cents per pound.

Cotton Futures Snapshot

May 25 Cotton closed at 65.89, reflecting a decline of 58 points and is currently down 77 points. July 25 Cotton closed at 67.01, with a slight increase of 1 point and is now down 65 points. December 25 Cotton ended at 68.51, closing up by 23 points and is currently down 56 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 are solely for informational purposes. For further details, please view the Barchart Disclosure Policy.

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