Cotton Futures Dip Despite Rebound from Previous Session

Cotton prices have seen a decline in futures, dropping between 17 to 26 points. Following this downturn, futures rebounded on Wednesday, rising by 72 to 100 points to conclude the trading day. Support came from an increase in crude oil futures, which rose by $1.44 per barrel, and a strengthening US dollar index, up $0.227.

Market Statistics and Auction Results

In a recent online auction conducted by The Seam, a total of 5,072 bales were sold at an average price of 63.56 cents per pound. Additionally, the Cotlook A Index saw a 25-point increase on March 11, reaching 77.95 cents per pound. Certified ICE cotton stocks remained stable on the same day, with a current level reported at 14,488 bales. Meanwhile, the USDA reduced its Adjusted World Price (AWP) by 201 points last Thursday, bringing it down to 51.88 cents per pound, with plans to provide another update this coming Thursday.

Current Cotton Futures Close

The following cotton futures closed on May 25:

• May 25 Cotton closed at 66.98, up 98 points, now down 19 points.
• July 25 Cotton closed at 68.16, up 97 points, currently down 26 points.
• October 25 Cotton closed at 69.92, up 72 points, currently down 26 points.

On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article, either directly or indirectly. All provided information is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.