Cotton Futures Decline Amid Mixed Market Signals
On Friday, cotton futures closed lower, with losses ranging from 71 to 86 points. For the week, March cotton fell by 84 points. The overall market showed mixed signals, as the US dollar index rose slightly while crude oil prices increased by $1.07 per barrel.
Increased Speculation Shorts Amid Shrinking Exports
Recent Commitment of Traders data revealed that speculators increased their net short positions by a total of 5,840 contracts as of Tuesday, bringing the total to 22,223 contracts as of December 12.
Export Sales Continue to Lag Behind Projections
According to export sales data, total cotton shipments reached 2.293 million running bales (RB), reflecting a 12% drop from last year. This amount constitutes only 22% of the USDA’s export forecast, falling short of the typical 25% shipping pace for this time of year. Additionally, total commitments—both shipped and unshipped—stood at 7.012 million RB, also down 12% from the previous year and representing only 66% of USDA projections, behind the usual 73% pace.
Market Prices and Stocks Information
The Seam reported online sales of 5,661 bales on December 12 at an average price of 64.99 cents per pound. Certified ICE cotton stocks remained steady at 20,113 bales as of Thursday. The Cotlook A Index saw an increase of 65 points on December 12, reaching 80.25 cents per pound. Conversely, the USDA Adjusted World Price (AWP) was reduced by 152 points to 56.22 cents per pound on Thursday.
Cotton Closing Prices
Mar 25 Cotton closed at 69.27, down 82 points.
May 25 Cotton closed at 70.41, down 86 points.
Jul 25 Cotton closed at 71.41, down 85 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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