Cotton Prices Rise as U.S. Market Shows Mixed Signals

March Cotton Futures Surge While Export Sales Drop

Cotton prices gained between 42 to 60 points on Monday morning. Last Friday, futures increased by 13 to 34 points, with March cotton up 186 points throughout last week. Meanwhile, the outside financial markets displayed mixed performance, as the US dollar index rose by 525 points and recorded its highest value in two years. Crude oil futures climbed by $1.09 per barrel.

According to data from the NASS, total cotton ginned reached 2.157 million RB in the first two weeks of November, bringing the marketing year total to 6.852 million RB. This marks a 20% increase compared to the same point last year.

The Commitment of Traders report from Friday revealed that short speculators substantially increased their net short positions by 22,136 contracts, bringing the total to 35,987 contracts as of November 19.

Export Sales figures for the 2024/25 upland cotton season indicate shipments totaling 1.858 million RB for the marketing year, which is 17% lower than last year and represents only 18% of the USDA’s full-year export forecast—a figure that typically averages around 22%. Overall commitments, including both shipped and unshipped sales, stand at 6.364 million RB, reflecting a 16% drop from last year and meeting only 60% of USDA’s expected targets, falling short of the average pace of 68% for export sales.

The Seam reported 12,433 bales of online sales on November 21, with an average price of 69.57 cents per pound. ICE cotton stocks remained unchanged on Wednesday, holding steady at 13,274 bales of certified stocks. The Cotlook A Index increased by 100 points on November 21, reaching 80.70 cents per pound, while the USDA Adjusted World Price (AWP) fell by 229 points on Thursday afternoon, bringing it down to 55.91 cents per pound.

Current cotton closing prices show:

• Mar 25 Cotton: Closed at 70.77 cents, up 34 points, currently up 59 points
• May 25 Cotton: Closed at 71.89 cents, up 24 points, currently up 60 points
• Jul 25 Cotton: Closed at 73.00 cents, up 20 points, currently up 53 points

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