Cotton Futures Decline as Crude Oil Prices Rise

Cotton futures are currently trading with losses ranging from 65 to 96 points as of Thursday’s midday session. In contrast, crude oil prices have risen by $1.88 per barrel. Additionally, the US dollar index increased by $0.975, bringing it to 100.410.

USDA Export Sales Report Highlights Changes

The USDA’s Export Sales report revealed total sales of 65,764 running bales (RB) of 2024/25 cotton for the week ending May 1. Out of these, 37,376 RB were allocated for the new crop. Vietnam emerged as the leading buyer of old crop cotton, purchasing 30,500 RB, while Mexico topped new crop purchases with 30,700 RB. This combined sales total marks the lowest figure since the week of October 3. Notably, shipments reached an eight-week high at 394,872 RB, with Vietnam receiving 117,300 RB and Pakistan getting 88,800 RB.

Market Pricing and Stocks Update

The Wednesday online auction from The Seam indicated sales of 1,350 bales at an average price of 62.31 cents per pound. The Cotlook A Index dipped by 55 points on Wednesday, settling at 79.45. ICE cotton stocks also rose by 3,088 bales as of May 7, with the certified stocks level reaching 17,137 bales. Furthermore, the USDA’s Adjusted World Price (AWP) increased by 6 points last week to 54.94 cents per pound, with an update expected later today.

Current Cotton Futures Pricing

July 25 Cotton: 66.42, down 96 points
October 25 Cotton: 68.45, down 95 points
December 25 Cotton: 68.56, down 69 points

On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, in the mentioned securities. The information presented in this article is intended solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.