Market Volatility: Cotton Futures Fluctuate

Monday saw the May cotton futures pulling back 163 points from their impressive 226-point gain. Despite this retreat, nearby contracts managed to wrap up the day with gains ranging from 1 to 67 points.

Index and Sales Insights

The Cotlook A Index experienced a decline of 135 points, settling at 98.45 on 3/15. Meanwhile, the USDA’s weekly Cotton Market Review reported the sale of 11,320 bales at an average price of 89.25 cents/lb. The latest Adjusted World Price (AWP) stands at 76.10 cents/lb for the week ending on Thursday.

Inventory Update

In the world of cotton, ICE certified stocks witnessed a modest increase of 1,100 bales, bringing the total to 27,765 as of 3/13.

Price Movement

On Monday, the cotton market paints a colorful picture:

May 24 Cotton closed at 94.57, up 63 points,

Jul 24 Cotton closed at 94.26, up 67 points,

Dec 24 Cotton closed at 83.81, up 13 points

The day’s trading activity showcases the resilience of the cotton market, with prices demonstrating strength and upward momentum.

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 are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.