Cotton Futures Decline Amid Shifts in Market Trends

Cotton futures ended the Friday session with contracts down 50 to 70 points, reflecting a decline of 172 points for July contracts this week. New crop futures experienced less downward pressure, falling just 100 points. In contrast, crude oil prices rose by $0.79 per barrel. The US dollar index increased by $0.111, reaching $100.840.

CFTC Report Highlights Increased Short Positions

The weekly CFTC report indicated that money managers in cotton futures and options added 8,039 contracts to their net short position as of May 13th. This brought the total short position to 29,088 contracts by Tuesday’s close.

USDA Export Sales Update

Following the USDA’s Export Sales report on Thursday, commitments for shipped and unshipped sales have reached 11.155 million running bales (RB). This figure represents 108% of the USDA’s export projection and matches the five-year average sales pace. Export shipments totaled 8.471 million RB, constituting 82% of the projection and surpassing the expected 75% average.

Market Indicators and Price Updates

The Cotlook A Index decreased by 75 points on Wednesday, settling at 77.25. Additionally, ICE cotton stocks rose by 1,053 bales due to new certifications recorded on May 15, resulting in a certified stock level of 34,153 bales. The USDA’s Adjusted World Price (AWP) fell by 91 points on Thursday to 53.90 cents per pound.

Closing Prices for Cotton Futures

July 25 Cotton closed at 64.89, down 54 points.

October 25 Cotton closed at 67.58, down 69 points.

December 25 Cotton closed at 67.67, down 51 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 for informational purposes only. 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.