Cotton Prices Show Positive Movement Amid Stable USDA Data

Cotton prices are currently trading higher, gaining between 41 to 83 points on Wednesday. On Tuesday, futures experienced a mixed trading session, with contracts fluctuating from gains of 2 points to losses of 9 across various front months. Supportive outside market conditions included a $0.59 increase in crude oil futures per barrel and a decrease of $0.598 in the US dollar index.

USDA Updates Cotton Balance Sheet

The USDA updated its cotton balance sheet on Tuesday morning, reporting no changes to US stocks, which remain at 4.9 million bales. The average farm price decreased by 50 points, bringing it down to 63 cents per pound. Additionally, the Cotton Ginnings report indicated that 162,950 running bales (RB) were ginned in February, pushing the total for the season to 14.124 million RB. This figure marks an increase of 20.23% compared to the same time last year.

World Cotton Stocks Overview

On the global side, the 2024/25 cotton stocks dropped by 80,000 bales to a total of 78.33 million bales. The reduction in stocks includes a cut of 200,000 bales from Brazil due to increased exports, while Australia saw an increase of 100,000 bales.

Auction and Price Index Information

The Monday online auction held by The Seam reported the sale of 4,756 bales at an average price of 61.17 cents per pound. The Cotlook A Index also rose by 75 points on March 10, reaching 77.70 cents per pound. As of that date, ICE cotton stocks remained stable at 14,488 bales.

The USDA adjusted its Adjusted World Price (AWP) last Thursday, decreasing it by 201 points to settle at 51.88 cents per pound.

Current Cotton Futures Prices

As for the latest cotton futures prices:

• May 25 Cotton closed at 66 cents, unchanged but currently up 82 points.
• July 25 Cotton closed at 67.19 cents, down 2 points, currently up 79 points.
• October 25 Cotton closed at 69.2 cents, up 9 points, currently up 41 points.

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