Cotton Futures Show Mixed Results Amid Weak Export Sales

Cotton futures posted minimal gains on Friday, with December slightly down by one point. For the week, July futures fell 127 points, while December saw a decline of 87 points. Crude oil prices decreased by $0.21, and the US dollar index rose by $0.161, reaching $99.370.

Export Sales and Shipment Data

The latest Export Sales report indicated only 118,658 RB of cotton sold for the week ending May 22, the lowest in three weeks. Vietnam led as the top buyer, purchasing 65,600 RB, followed by Bangladesh with 17,300 RB. New crop sales totaled 13,822 RB. Shipments increased to 275,379 RB, primarily going to Vietnam at 117,000 RB and Pakistan at 34,300 RB.

Market Analysis

On Friday, the Commitment of Traders report revealed that specs added 3,180 contracts to their net short position, bringing the total to 43,219 contracts as of May 27. An online sale from The Seam on Thursday recorded 450 bales sold at an average price of 66.34 cents per pound.

The Cotlook A Index fell by 25 points to 77.70 on May 29. ICE cotton stocks rose by 1,143 bales due to new certifications, totaling 43,006 bales. The USDA’s Adjusted World Price increased by 32 points this week, now at 53.84 cents per pound.

Cotton Futures Closing Prices

July 25 Cotton closed at 65.06, up 22 points.

October 25 Cotton closed at 67.44, up 20 points.

December 25 Cotton closed at 67.75, down 1 point.

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.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.