Cotton Futures Rise as Market Trends Favorable Support Growth

Cotton futures concluded Friday with gains ranging from 82 to 86 points across the front months. Notably, May futures rose by 82 points during the week. March futures expired today, reinforcing current market dynamics. Outside factors also played a significant role, with crude oil futures increasing by 69 cents per barrel. The US dollar index saw a decline, down by $0.173 for the day.

Record Net Shorts in Cotton Futures

Recent CFTC data revealed that speculators in cotton futures and options increased their record net short positions by 11,504 contracts as of March 4. This brought the total net short to a record high of 79,957 contracts by Tuesday.

USDA Export Sales and Market Activity

USDA export sales data reported total cotton export commitments at 9.852 million running bales (RB), representing a 6% decline compared to last year. This figure accounts for 96% of the USDA’s export forecast and is 1% ahead of the average sales pace.

In Thursday’s online auction hosted by The Seam, 2,961 bales were sold, averaging 59.94 cents per pound. The Cotlook A Index increased by 50 points on March 6, reaching 75.45 cents per pound. Additionally, ICE cotton stocks rose by another 55 bales on the same date, with current certified stocks totaling 14,488 bales. The USDA adjusted the Adjusted World Price (AWP) down by 201 points to 51.88 cents per pound on Thursday afternoon.

Friday’s Closing Prices

Throughout the session on March 25, cotton prices closed as follows:

• Mar 25 Cotton: closed at 64.76, up 86 points
• May 25 Cotton: closed at 66.07, up 86 points
• Jul 25 Cotton: closed at 67.15, up 82 points

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

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