Cotton Futures Rise Amidst Supportive Market Conditions

Cotton futures have seen an increase of 60 to 154 points as of Friday. Importantly, today marks the expiration of March futures. The overall market environment is bolstering these prices, highlighted by a rise in crude oil futures, which are up 77 cents per barrel, alongside a decline in the US dollar index by $0.179.

Export Sales and Market Commitments

The USDA’s latest Export Sales report shows total cotton export commitments at 9.852 million running bales (RB), reflecting a 6% decrease from the previous year. This figure represents 96% of the USDA’s export forecast and is 1% ahead of the average pace for export sales.

Recent Auction Results and Price Movements

On Thursday, The Seam’s online auction sold 2,961 bales at an average price of 59.94 cents per pound. Additionally, on March 6, the Cotlook A Index rose by 50 points, landing at 75.45 cents per pound. Certified ICE cotton stocks increased by 55 bales on the same date, bringing the total to 14,488 bales. In response to these market dynamics, the USDA reduced their Adjusted World Price (AWP) by 201 points, now at 51.88 cents per pound.

Current Cotton Prices

As for current prices: March 25 Cotton is at 63.9, an increase of 154 points; May 25 Cotton is at 65.86, up 65 points; and July 25 Cotton is at 66.98, also up 65 points.

On the date of publication, Austin Schroeder did not hold any positions, either directly or indirectly, in the securities mentioned in this article. All information and data provided are for informational purposes only. For additional details, please refer to the Barchart Disclosure Policy here.

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