Positive Movement in Cotton Futures

Cotton futures are currently 70 points lower than their session peaks at midday, showcasing a strong surge following the NASS data release. New crop futures have also seen an increase of 21 to 43 points during midday trading.

Steady Increase in Cotton Bookings

According to FAS data, cotton bookings totaled 98.2k RBs for the week ending on 3/21. This marks an 8% increase from the previous week and is a substantial 46% higher than the 4-week average.

Intended Acres for Cotton Planting

NASS surveys have indicated that 10.673 million acres are earmarked for cotton planting this season. This represents a significant increase of 443k acres from the previous year, although slightly lower than the expected 11.3 million. While each pre-report survey foresaw a year-on-year increase in acreage, the March figures landed on the lower end of estimations.

Online Sales and Market Indices

The Seam reported 4,299 bales sold online on 3/26 at an average gross price of 79.32 cents. The 3/26 Cotlook A Index saw a rise of 45 points to 96.90 cents/lb. Additionally, the AWP stands at 72.50 cents per pound, effective for farm program purposes until Thursday. ICE certified stocks were recorded at 41,756 bales as of 3/20.

May 24 Cotton is currently trading at 90.92, up 15 points,

Jul 24 Cotton is at 91.57, showing an increase of 13 points,

Dec 24 Cotton is at 83.05, down 29 points

On the date of publication, Alan Brugler 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.

The views and opinions expressed herein belong to the author and do not necessarily align with those of Nasdaq, Inc.