Cotton Futures Decline Amid Mixed Market Conditions

On Monday, cotton futures experienced losses ranging from 38 to 46 points for the front months. Meanwhile, external market factors showed a diverse trend, with crude oil futures rising by 8 cents per barrel, while the US dollar index increased by 593 points.

Record Short Positioning in Cotton Futures

Recent data from the Commodity Futures Trading Commission (CFTC) revealed that speculators have expanded their net short positions in cotton futures and options. As of January 28, they added 5,135 contracts, reaching a historic net short total of 53,574 contracts.

Market Prices and Stock Levels

The Seam reported 1,380 bales sold online on January 31, at an average price of 60.10 cents per pound. ICE cotton stocks remained steady at 218 bales of certified stocks as of last Friday. Furthermore, the Cotlook A Index dropped by another 50 points on January 31, settling at 77.30 cents per pound. In contrast, the USDA Adjusted World Price (AWP) rose by 31 points from the previous week to reach 54.02 cents per pound last Thursday afternoon.

Current Cotton Futures Prices

Mar 25 Cotton is trading at 65.5, down 38 points.

May 25 Cotton is trading at 66.59, down 45 points.

Jul 25 Cotton is trading at 67.77, down 46 points.

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

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