Cotton Futures Dip Amid Mixed Market Signals

Recent Reports Show Harvest Outpacing Average, Yet Prices Decline

Cotton futures took a step back on Wednesday, recording losses between 18 and 35 points. While the outside markets show a mix of movements today, the US dollar index continues its rally, increasing by another 400 points. Crude oil futures also saw a modest rise of 58 cents.

The latest Crop Progress report from NASS indicated that cotton harvesting is 71% complete as of November 10. This figure is 8 percentage points higher than the 5-year average pace, suggesting a robust harvest season.

On November 12, The Seam reported 438 online sales of cotton at an average price of 63.28 cents per pound. Meanwhile, ICE cotton stocks remained steady on Tuesday, holding at 174 bales of certified stocks. Additionally, the Cotlook A Index declined by 100 points on November 12, settling at 82.25 cents per pound. The USDA Adjusted World Price (AWP) also fell, dropping another 58 points last week to reach 57.96 cents per pound.

Mar 25 Cotton is currently priced at 70.89, down 18 points.

May 25 Cotton stands at 72.14, reflecting a decrease of 26 points.

Jul 25 Cotton is listed at 73.31, down by 34 points.

On the date of publication, Austin Schroeder did not hold any positions, either directly or indirectly, in any securities mentioned in this article. All information and data in this article are presented solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.

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