Mixed Cotton Prices Amid Stagnating Market Trends

Cotton prices displayed a mixed trend early on Tuesday, with old crop contracts increasing by 1 to 4 points, while new crop contracts fell between 5 and 7 points. This fluctuation follows Monday’s futures losses that ranged from 157 to 180 points, illustrating a renewed weakness in the market. Crude oil futures experienced a modest gain, climbing 6 cents per barrel. Meanwhile, the US dollar index continued its downward trend, closing at $99.440 with a drop of $0.452.

Cotton Planting Progress and Market Metrics

According to the Weekly Crop Progress data, the US cotton crop is currently 5% planted. This figure lags behind the average pace of 8% for this time of year.

Cash Sales and Index Movements

The Seam reported a modest sale of 31 cash bales on April 11, with an average price of 56 cents per pound. The Cotlook A Index reported a decline of 25 points on Friday, closing at 78.30 cents per pound. Additionally, certified ICE cotton stocks saw a decrease of 10 bales due to decertification, resulting in a certified stock level of 14,478 bales. The USDA’s Adjusted World Price (AWP) decreased by 212 points last week, settling at 53.10 cents per pound.

Current Futures Prices

May 25 Cotton closed at 64.09 cents, marking a decrease of 180 points but currently shows an increase of 4 points.

July 25 Cotton also closed lower at 65.35 cents, down 166 points, with a slight uptick of 1 point observed currently.

December 25 Cotton fell to 66.94 cents, down 157 points, and is currently down by 5 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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