Cotton Futures Decline Amid Excess Stocks and Falling Crude Prices

Cotton futures experienced a decrease of 21 to 39 points in most nearby contracts on Thursday. Simultaneously, crude oil futures are facing a downturn, dropping $3.26 per barrel at midday. The US dollar index has also fallen by $1.903, bringing it down to 100.72.

USDA Updates on Cotton Stocks

In a report released this morning, the USDA announced a 100,000 bale increase to the US ending stocks estimate, raising it to 5 million bales. This adjustment was primarily due to a reduction in export projections, which were cut by 100,000 bales. Additionally, global ending stocks for the 2024/25 season rose by 530,000 bales to 78.86 million bales.

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Export Sales and Production Updates

The export sales data reported a total of 115,082 running bales (RB) sold in the week ending April 3, marking an 11% decline compared to the previous week. Moreover, export shipments during the same week amounted to 377,200 RB, reflecting a decrease from the earlier week’s figures.

On Thursday morning, CONAB slightly raised its estimate for Brazilian cotton production by 0.07 MMT, bringing the total to 3.89 MMT.

Market Pricing Insights

The Seam reported that 670 cash bales were sold on Wednesday, with an average price of 56.98 cents per pound. The Cotlook A Index fell by 40 points to 77.55 cents per pound as of April 9. ICE cotton stocks remained stable on April 9, with current certified stock levels at 14,488 bales. Furthermore, USDA’s Adjusted World Price (AWP) increased by 158 points last week to reach 55.22 cents per pound, with updates expected later today.

Current Cotton Futures Prices

May 25 Cotton is priced at 66.42, down 21 points.

Jul 25 Cotton stands at 66.92, down 39 points.

Dec 25 Cotton is at 68.21, down 26 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
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