Cotton Futures Decline Amid Mixed Market Signals

On Friday, cotton futures recorded significant losses ranging from 12 to 92 points, concluding a challenging week with March dropping 123 points. Despite external factors that typically support the market, they failed to lift prices; the US dollar index decreased by 469 points while crude oil prices rose by $0.94 per barrel.

According to the USDA, cotton sales for the week ending December 26 reached 128,866 running bales (RB), marking the lowest booking level in 12 weeks for the 2024/25 season. Turkey emerged as the largest buyer, purchasing 41,300 RB, while Pakistan accounted for 30,000 RB. Meanwhile, shipments totaled 115,813 RB, the lowest recorded in seven weeks, with Vietnam receiving 33,800 RB and Pakistan getting 25,300 RB.

The Seam reported online sales of 10,249 bales on January 2, with an average price of 60.01 cents per pound. ICE cotton stocks remained steady on Thursday at 20,113 bales of certified stocks. The Cotlook A Index held at 78.90 cents per pound on January 2. Additionally, the USDA Adjusted World Price (AWP) rose by 48 points from the previous week, now standing at 55.03 cents per pound.

Mar 25 Cotton closed at 67.66, down 91 points.

May 25 Cotton closed at 68.81, down 92 points.

Jul 25 Cotton closed at 69.89, down 86 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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