Cotton Futures Rise Amid Increased Export Activity
Market Update: Cotton Prices Show Modest Gains
Cotton futures saw gains between 10 and 22 points on Friday, driven by a surge in export business. Specifically, the March contract increased by 116 points since last Friday and is up 10 points since the end of October. In the broader market, crude oil prices fell by 94 cents per barrel, and the US dollar index declined by 248 points.
Strong Export Sales Highlight Market Strength
Recent Export Sales data revealed notable activity, with 324,072 running bales (RB) of cotton exported for the 2024/25 marketing year, marking a record high for the marketing year and representing a 1.74% increase compared to last year. Notably, Pakistan was the largest buyer, securing 146,300 RB, followed by Vietnam with 52,300 RB. Conversely, shipments slightly decreased to 130,318 RB compared to the previous week, although this figure remains 46.68% higher than during the same week last year. Among these shipments, 25,200 RB went to Pakistan, and 18,700 RB were sent to Mexico.
Market Indicators and Price Trends
The Seam platform reported 3,554 bales sold online on November 27 at an average price of 68.64 cents per pound. Certified cotton stocks remained steady at 13,274 bales as of Thursday. The Cotlook A Index held at 82.00 cents per pound, unchanged since November 27. Meanwhile, the USDA adjusted the World Price (AWP) upward by 162 points this week, bringing it to 57.53 cents per pound.
Cotton Futures Prices by Contract
Mar 25 Cotton closed at 71.93, up 18 points.
May 25 Cotton closed at 72.98, up 14 points.
Jul 25 Cotton closed at 73.93, up 10 points.
On the date of publication, Austin Schroeder did not hold positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. 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.
