Cotton Futures Decline Amid Mixed Market Conditions
Cotton futures ended the Friday session lower, with contracts decreasing by 70 to 81 points. The May contract concluded the week down 210 points compared to last Friday. In the broader market, crude oil futures rose by 30 cents per barrel, while the US dollar index increased by $0.293 on the day.
Cotton Export Commitments and Market Projections
For the 2024/25 marketing year, cotton export commitments stand at 10.225 million running bales (RB), reflecting a 5% decrease from last year. This figure represents 99% of the US Department of Agriculture’s (USDA) full-year export projection, consistent with the average sales pace.
Market Activity and CFTC Report Insights
The latest CFTC Commitment of Traders report, dated March 18, revealed that managed money reduced its net short position in cotton futures and options by 6,793 contracts. As of the report, they held a net short position of 69,617 contracts by Tuesday.
Sales and Pricing Information
Thursday saw limited online sales through The Seam, with only 285 bales sold at an average price of 49.08 cents per pound. The Cotlook A Index remained stable at 78.50 cents per pound on March 20. Additionally, ICE cotton stocks held steady, reporting certified stocks of 14,488 bales as of March 20. The USDA updated its Adjusted World Price (AWP), which increased by 87 points to reach 54.63 cents per pound on Thursday afternoon.
Closing Prices for Cotton Contracts
May 25 Cotton closed at 65.27, down 81 points.
July 25 Cotton closed at 66.79, down 78 points.
December 25 Cotton closed at 68.66, down 70 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
