Cotton Futures Decline Amidst Mixed Market Reports

Cotton futures experienced declines of 16 to 31 points across most contracts on Thursday. In contrast, crude oil futures also fell, decreasing by $2.06 per barrel. Meanwhile, the US dollar index saw a decline, losing $1.888 to settle at $100.735 for the day.

USDA Reports Increase in Cotton Ending Stocks

This morning, the USDA announced a 100,000 bale increase to the US ending stocks estimate, bringing the total to 5 million bales. This adjustment was attributed to a corresponding 100,000 bale reduction in export predictions. Additionally, world ending stocks for the 2024/25 season rose by 530,000 bales, reaching 78.86 million bales.

Export Sales and Market Trends

Export sales data revealed a total of 115,082 running bales (RB) sold during the week ending April 3, marking a 10.86% decrease from the prior week. Vietnam emerged as the largest purchaser, securing 64,800 RB, while Turkey bought 19,100 RB. Export shipments for the same week accounted for 377,200 RB, hitting a three-week low. Vietnam was the primary destination for shipments, receiving 128,400 RB, with Pakistan importing 69,100 RB.

Brazilian Cotton Production Adjustments

The National Company of Supply (CONAB) slightly revised its Brazilian cotton production estimate upwards, increasing it by 0.07 to a total of 3.89 million metric tons (MMT).

Market Prices and Stock Levels

The Seam reported 670 cash bales sold on Wednesday, with an average price of 56.98 cents per pound. The Cotlook A Index dipped by 40 points on April 9, settling at 77.55 cents per pound. As of April 9, ICE cotton stocks remained stable, with certified stocks recorded at 14,488 bales. The USDA’s Adjusted World Price (AWP) decreased by 212 points last week, now standing at 53.10 cents per pound.

Cotton Futures Closing Prices

May 25 Cotton closed at 66.47, down 16 points.

Jul 25 Cotton closed at 67.00, down 31 points.

Dec 25 Cotton closed at 68.28, down 19 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.

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