Cotton Prices Decline Amid Mixed Market Data

Cotton prices are experiencing losses ranging from 49 to 66 points on Tuesday morning. This follows a stronger start to the week, where futures rose between 65 and 107 points at the previous close. Crude oil prices increased by $2.25, while the US dollar index decreased by $0.644 to $98.615.

US Cotton Crop Progress Report

The latest Crop Progress report revealed that 66% of the US cotton crop is planted, which is 3 percentage points behind the average. Currently, 8% of the crop is squared, compared to the 5-year average of 7%. Crop condition ratings indicate that only 49% are categorized as good or excellent, marking a 12% decline from last year. The Brugler500 index stands at 324, the lowest initial score since 2013.

Market Indices and Adjusted Prices

The Cotlook A Index fell by 45 points on May 30, now at 77.25. ICE cotton stocks remained stable on the same date, with certified stocks at 43,006 bales. The USDA’s Adjusted World Price (AWP) rose by 32 points last week to 53.84 cents per pound.

Cotton Futures Pricing

On July 25, cotton closed at 66.13, up 107 points, but is currently down 66 points. Oct 25 cotton closed at 68.09, up 65 points, and is now down 49 points. For Dec 25 cotton, it closed at 68.69, up 94 points, but is currently down 62 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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