Cotton Futures Dip Amid Mixed Market Signals

On Tuesday, cotton futures experienced losses ranging from 12 to 27 points. This decline comes against a backdrop of mixed external factors, including a drop of 552 points in the US dollar index and a $1.05 decrease in crude oil prices per barrel.

Speculators Adjust Positions in Cotton Futures

According to the CFTC Commitment of Traders data, speculators in the cotton futures and options market have reduced their net short positions. As of January 7, they trimmed 340 contracts, bringing their total to 39,342 contracts.

Sales and Stock Data Show Little Change

The Seam reported 11,823 bales sold online on January 11 at an average price of 51.92 cents per pound. Meanwhile, ICE cotton stocks remained steady on Monday, holding at 20,113 bales of certified stocks. The Cotlook A Index dropped 150 points on January 13, settling at 77.45 cents per pound. Last Thursday, the USDA Adjusted World Price (AWP) decreased by 37 points from the previous week, now at 54.66 cents per pound.

Current Cotton Futures Prices

Mar 25 Cotton is priced at 67.52, down 12 points.

May 25 Cotton is at 68.69, down 18 points.

Jul 25 Cotton is at 69.66, down 27 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 details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.