Cotton Futures Decline Amid Mixed Market Signals

Midday Losses Continue Despite Positive External Factors

Cotton futures saw a drop of 75 to 80 points on Friday during midday trading. While losses were noted, supportive outside factors emerged, including a decline in the US dollar index by 334 points and an increase in crude oil prices by $1.18 per barrel.

USDA Reports Weak Cotton Sales and Shipments

The USDA announced that 128,866 RB of cotton were sold for the week ending December 26, marking a 12-week low for the 2024/25 season. Among the buyers, Turkey accounted for 41,300 RB, while Pakistan purchased 30,000 RB. Additionally, weekly shipments fell to 115,813 RB, the lowest total in seven weeks, with Vietnam receiving 33,800 RB and Pakistan receiving 25,300 RB.

Recent Trends in Online Sales and Cotton Prices

According to The Seam, online cotton sales on January 2 totaled 10,249 bales, with an average price set at 60.01 cents per pound. ICE cotton stocks remained stable at 20,113 bales of certified stocks as reported on Thursday. The Cotlook A Index held steady at 78.90 cents per pound as of January 2. Also, the USDA declared that the cotton marketing assistance loan rate for 2025 will be 52 cents. The USDA Adjusted World Price (AWP) rose 48 points from the previous week to 55.03 cents per pound.

Current Cotton Futures Prices

Mar 25 Cotton is currently priced at 67.81 cents, a decline of 76 points.

May 25 Cotton is at 68.98 cents, down 75 points.

Jul 25 Cotton is listed at 69.99 cents, also down 76 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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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