Cotton Futures Decline Amidst Market Pressures

Outside factors weigh heavily as crude oil dips

Cotton futures ended Monday’s trading session lower, with contracts dropping between 5 to 32 points. The market faced pressure from outside sources, particularly as crude oil prices fell by $3.81 per barrel after reports indicated that Israel’s military actions against Iran were limited over the weekend. Additionally, the US dollar index rose by 43 points, contributing to the downward movement in cotton prices.

According to the latest Crop Progress data, 97% of the US cotton crop has entered the boll-setting stage, and 52% of the harvest is now complete, which is 6 percentage points ahead of the typical schedule. However, the overall condition rating for the crop has decreased to 33% good/excellent, a drop of 4% from the previous week. The Brugler500 index also fell by 9 points, landing at a current score of 286.

On October 25, The Seam reported online sales of 496 bales at an average price of 68.84 cents per pound. ICE cotton stock levels remained unchanged as of Friday, with 174 bales of certified stocks reported. The Cotlook A Index saw a decrease of 100 points on October 25, settling at 83.25 cents per pound. Conversely, the USDA Adjusted World Price (AWP) slightly improved, climbing by 4 points to reach 59.28 cents per pound on Thursday afternoon.

Mar 25 Cotton closed at 72.54, down 31 points,

May 25 Cotton closed at 74.1, down 29 points,

Jul 25 Cotton closed at 75.19, down 27 points.

On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data in this article are provided for informational purposes only. For more details, please view the Barchart Disclosure Policy
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