Cotton Futures Show Mixed Results Amid Market Shifts

Cotton futures exhibited varied performance on Friday, with the front month May contract decreasing by 58 points, while other contracts rose between 1 and 23 points. Despite this decrement, May remains up by 253 points for the week. In the broader commodities market, crude oil futures gained $1.44 per barrel, signaling a potential rebound. The US dollar index, however, demonstrated continued weakness, dropping by $0.960 to settle at $99.645.

Data released by the CFTC on Friday indicates that speculative funds in cotton futures and options have significantly reduced their net short position. As of April 8, they cut back by 10,943 contracts, bringing their total short positions to 55,691 contracts.

On April 10, the Seam reported the sale of 1,207 cash bales of cotton at an average price of 56.56 cents per pound. Concurrently, the Cotlook A Index increased by 100 points to reach 78.55 cents per pound. Certified ICE cotton stocks remained stable as of April 10, totaling 14,488 bales. Meanwhile, USDA’s Adjusted World Price (AWP) fell by 212 points, now standing at 53.10 cents per pound.

Cotton Futures Prices Update

May 25 Cotton closed at 65.89, down 58 points.

Jul 25 Cotton closed at 67.01, up 1 point.

Dec 25 Cotton closed at 68.51, up 23 points.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy.

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