Struggles for Cotton Futures as Market Faces Mixed Signals

On Friday, cotton futures are experiencing a downturn, with midday losses of 80 to 81 points in the front months. External market influences remain varied, as the US dollar index sees a slight increase while crude oil prices have surged by $1.19 per barrel.

Export Sales Reveal Significant Declines

The latest export sales report shows total cotton shipments at 2.293 million running bales (RB). This figure represents a 12% decrease compared to last year and only 22% of the USDA’s export forecast, falling short of the typical shipping pace of 25% for this time of year. Overall shipped and unshipped commitments now total 7.012 million RB, also down 12% from a year ago, reflecting just 66% of the USDA’s projection and trailing behind the average pace of 73%.

Market Data and Pricing Updates

As reported by The Seam, there were 5,661 bales of online sales on December 12 at an average price of 64.99 cents per pound. Additionally, ICE cotton stocks remained steady on Thursday, totaling 20,113 bales of certified stocks. The Cotlook A Index increased by 65 points on December 12, now sitting at 80.25 cents per pound. In contrast, the USDA Adjusted World Price (AWP) has been lowered by 152 points to 56.22 cents per pound.

Current Cotton Futures Prices

Mar 25 Cotton is priced at 69.29 cents, down 80 points.

May 25 Cotton is at 70.46 cents, down 81 points.

Jul 25 Cotton is at 71.46 cents, down 80 points.

On the date of publication, Austin Schroeder did not have any positions in the securities mentioned in this article. All information and data are intended solely for informational purposes. To learn more about our disclosure policy, please view the Barchart Disclosure Policy here.

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