Cotton Futures Decline as Market Adjusts to Economic Factors

Cotton futures ended Wednesday’s trading session lower, with contracts falling by 24 to 45 points as May contracts expired. In parallel, crude oil prices retreated by $1.14 per barrel. The US dollar index saw an increase of $0.678, climbing to 99.725.

Important Trade Discussions Ahead

On Tuesday, the United States and China reached an agreement for a meeting in Geneva, Switzerland, scheduled for Saturday. Participants will include Treasury Secretary Bessent, USTR Greer, and Chinese Vice Premier He Lifeng. The agenda is expected to encompass discussions on reducing export controls and broader tariff issues.

Cotton Market Updates

The Tuesday online auction conducted by The Seam recorded sales of 4,555 bales at an average price of 69.37 cents per pound. The Cotlook A Index saw an increase of 275 points on Tuesday, closing at 80. ICE cotton stocks remained stable as of May 6, with certified stock levels reported at 14,049 bales. Additionally, the USDA’s Adjusted World Price (AWP) rose by 6 points last week, reaching 54.94 cents per pound.

Closing Prices for Cotton Contracts

May 25 Cotton closed at 70.47, down 147 points.

Jul 25 Cotton closed at 67.38, down 45 points.

Dec 25 Cotton closed at 69.25, down 27 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 solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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