Cotton Prices Decline Amid Mixed Market Conditions

Cotton prices dropped 60 to 105 points early on Tuesday. The futures market showed weakness on Monday as contracts fell between 47 and 125 points. In the broader market, crude oil futures decreased by $1.14 per barrel, while the US dollar index fell by $0.574 to reach 98.680.

US Cotton Crop Progress

As of April 27, the National Agricultural Statistics Service (NASS) reported that the US cotton crop is 15% planted, matching a pace that is now 1 percentage point ahead of the five-year average.

Market Transactions and Indicators

On April 25, The Seam recorded the sale of 4,649 cash bales at an average price of 64.17 cents per pound. Additionally, the Cotlook A Index increased by 25 points last Friday, settling at 80.55 cents per pound. ICE cotton stocks remained constant on April 25, with certified stocks recorded at 14,478 bales. The USDA’s Adjusted World Price (AWP) rose by 145 points last Thursday to 54.88 cents per pound.

Futures Market Update

May 25 Cotton closed at 66.38, down 47 points and currently unchanged. Jul 25 Cotton closed at 67.55, down 125 points, and is now down 105 points. Dec 25 Cotton closed at 69.01, a decline of 96 points, and is currently down by 71 points.

On the date of publication, Austin Schroeder did not hold (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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