Cotton futures saw significant losses on Friday, with March contracts decreasing by 211 points for the week, closing at 61.06 cents/lb—down 70 points. Speculative traders increased their net short positions in cotton futures and options by 6,717 contracts, bringing the total to 71,746 net short contracts. In contrast, crude oil futures rose by $21 per barrel, settling at $63.50.
As of January 29, total export commitments for cotton stand at 7.8 million running bales, which is 12% lower than the previous year, now accounting for 68% of the USDA forecast—significantly behind the 86% average. The Thursday auction from The Seam reported sales averaging 54 cents/lb on 592 bales, while ICE certified cotton stocks rose to 74,997 bales with an increase of 27,344 bales. The Adjusted World Price has been updated to 49.78 cents/lb, a decrease of 42 points.
