Cotton Prices Experience Minor Losses Amid Strong Futures Rally

Cotton prices are displaying losses between 6 to 19 points early on Monday. Last Friday, futures experienced a notable rally, closing with gains ranging from 68 to 90 points. Overall, the May contract saw an increase of 130 points throughout the week. Supporting this trend, crude oil futures rose by $0.64 per barrel, while the US dollar index dipped by $0.155.

Managed Money Speculator Adjustments

As of Tuesday, large managed money speculators have reduced their net short position in cotton futures and options by 3,547 contracts. Previously, this net short position stood at 76,410 contracts as of March 11.

Market Updates and Auction Results

In the latest online auction held by The Seam, a total of 5,722 bales were sold at an average price of 66.35 cents per pound. Additionally, the Cotlook A Index increased by 100 points on March 13, reaching 78.85 cents per pound. ICE cotton stocks remained stable as of March 13, with certified stock levels at 14,488 bales. In a recent adjustment, the USDA raised the weekly Adjusted World Price (AWP) by 188 points last Thursday to 53.76 cents per pound.

Current Cotton Futures Prices

As of the latest trading:

• May 25 Cotton closed at 67.37, up 84 points
• Jul 25 Cotton closed at 68.60, up 90 points
• Oct 25 Cotton closed at 70.25, up 68 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 is solely for informational purposes. For more information 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.