Cotton Futures Decline Amidst Mixed Market Indicators

USDA Reports Increase in Production and Carryout

Cotton futures are experiencing declines between 62 to 68 points at midday. The outside markets present a mixed bag of factors, with the US dollar index up by 365 points, while crude oil saw a modest increase of $0.45 per barrel.

USDA Updates Yield and Production Figures

The USDA’s recent balance sheet update revealed a 3-pound increase in yield, now estimated at 792 pounds per acre. Production has risen by 70,000 bales, reaching a total of 14.255 million bales. This adjustment has subsequently lifted the 2024/25 carryout by 100,000 bales to stand at 4.4 million bales. Additionally, the Cotton Ginnings data indicated that another 2.825 million running bales (RB) were ginned during the last two weeks of November, bringing the cumulative figure to 9.678 million RB as of December 1. This marks a significant 15% increase compared to the same time last year.

Market Selling Activity and Price Adjustments

The Seam reported 5,851 bales sold online on December 9, with an average price of 66.42 cents per pound. As for ICE cotton stocks, there were 1,236 bales available on Monday, part of a larger 17,932 bales of certified stocks. The Cotlook A Index dropped by 100 points on December 6, settling at 80.35 cents per pound. Meanwhile, the USDA Adjusted World Price (AWP) was raised by 21 points last week, now at 57.74 cents per pound.

Current Cotton Futures Prices

Mar 25 Cotton is priced at 69.33, down 62 points.

May 25 Cotton is at 70.56, down 63 points.

Jul 25 Cotton is at 71.57, down 68 points.

On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data provided are for informational purposes only. For further details, please refer to 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.