Cotton Futures Experience Gains Amid Mixed Market Signals

Cotton futures are seeing midday gains today, climbing 34 to 42 points. Market influences are mixed; the US dollar index is up 198 points, while crude oil prices have increased by $2.17 per barrel.

USDA Adjusts Cotton Production Estimates

The USDA has raised its cotton production forecast by 150,000 bales, now projecting a total of 14.41 million bales. The yield has improved by 44 pounds per acre, but harvested acres have been reduced by 360,000, bringing the total to 8.27 million. Following a 300,000 bale cut in export estimates, the USDA increased its carryout projection by 400,000 bales, now expected to reach 4.8 million bales.

Market Reporting and Average Prices

The Seam reported 4,236 bales of online sales on January 10, with an average selling price of 59.30 cents per pound. On Friday, ICE cotton stocks remained steady at 20,113 bales of certified stocks. The Cotlook A Index rose by 25 points on January 9, resting at 78.95 cents per pound. Conversely, the USDA’s Adjusted World Price (AWP) declined by 37 points compared to the previous week, now at 54.66 cents per pound.

Current Cotton Futures Prices

Mar 25 Cotton is trading at 67.43, up 42 points.

May 25 Cotton is at 68.66, gaining 40 points.

Jul 25 Cotton is at 69.71, up 34 points.

On the date of publication,
Austin Schroeder
did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

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