Cotton Futures Rise Amid Mixed Market Signals
Key Market Data Shows Positive Trends in Cotton Production
Cotton futures saw a rise of 13 to 34 points to conclude trading on Friday, with March futures increasing by 186 points this week. In contrast, outside market movements were mixed; the US dollar index climbed by 525 points and reached its highest level in two years. Additionally, crude oil futures rose by $1.09 per barrel.
Production Figures Indicate Strong Year-on-Year Growth
According to the latest Cotton Ginnings data from NASS, a total of 2.157 million running bales (RB) of cotton were ginned in the first two weeks of November, bringing the marketing year total to 6.852 million RB. This reflects a 20% increase compared to the same time last year.
Commitment of Traders Report Highlights Increased Short Selling
The Commitment of Traders report released on Friday showed that short speculators added a significant 22,136 contracts to their net short position as of November 19, bringing the total to 35,987 contracts.
Export Sales Reveal Decline in Cotton Shipments
Export Sales data for the 2024/25 marketing year reported that upland cotton shipments totaled 1.858 million RB, representing a 17% decrease from last year. This figure accounts for only 18% of the USDA’s forecast for the full year, which is typically around 22%. Total commitments, including both shipped and unshipped sales, stand at 6.364 million RB, marking a 16% decline from last year. This total comprises 60% of the USDA’s projection, falling short of the 68% average pace for export sales.
Market Pricing and Stock Updates
The Seam reported 12,433 bales of online sales on November 21, with an average price of 69.57 cents per pound. ICE cotton stocks remained unchanged as of Wednesday, holding steady at 13,274 bales of certified stocks. The Cotlook A Index increased by 100 points on November 21, settling at 80.70 cents per pound. On the other hand, the USDA Adjusted World Price (AWP) was reduced by 229 points on Thursday afternoon, now at 55.91 cents per pound.
Current Closing Prices for Cotton Futures
March 25 Cotton closed at 70.77, up 34 points.
May 25 Cotton closed at 71.89, up 24 points.
July 25 Cotton closed at 73, up 20 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 the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
