Struggles for Cotton Futures Amid Market Pressures

Cotton futures have taken a hit, dropping between 87 to 99 points on Friday, largely due to external market pressures. With December cotton futures set to expire today, traders are feeling the impact as the US dollar index rises by 374 points. Additionally, crude oil prices are down by 81 cents per barrel, further influencing the market.

Export Sales Data Paints a Grim Picture

The latest export sales report reveals that upland cotton shipments for the 2024/25 marketing year have reached 2.145 million running bales (RB), which is a 13% decrease from the previous year. This figure accounts for only 20% of the USDA’s full-year export forecast, which typically sits at 24%. Moreover, total commitments, including both shipped and unshipped sales, are at 6.859 million RB, marking a 13% drop from last year. This number represents 65% of the USDA’s projections, falling short of the average export sales pace of 71%.

Current Market Stats and Trends

According to The Seam, there were 7,693 bales sold online on December 5, with an average price of 68.01 cents per pound. ICE cotton stocks increased by 1,189 bales last Thursday, reaching a total of 14,463 bales in certified stocks. The Cotlook A Index held steady on December 5 at 81.60 cents per pound, while the USDA Adjusted World Price (AWP) rose by 21 points this week to 57.74 cents per pound.

Futures Prices at a Glance

Mar 25 Cotton: 70.12, down 98 points

May 25 Cotton: 71.42, down 96 points

Jul 25 Cotton: 72.47, down 87 points

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