Cotton Prices Retreat Again: Market Update for December 9
Market Trends Show Mixed Indicators Amid Revised USDA Projections
Cotton prices fell once more on Wednesday morning, registering losses of 32 to 36 points. On Tuesday, futures ended lower as the USDA reported an increase in stocks. Contracts saw declines of 40 to 76 points across the board. The outside markets showed mixed signals, with the US dollar index climbing 275 points, while crude oil prices rose by $0.7 per barrel.
The USDA’s latest balance sheet revealed a 3-pound increase in yield to 792 pounds, along with a 70,000 bale increase in production, bringing the total to 14.255 million bales. Consequently, the carryout for the 2024/25 season was adjusted to 4.4 million bales, an increase of 100,000 bales. Additionally, cotton ginning data indicated that 2.825 million RB of cotton were ginned in the last two weeks of November, raising the total to 9.678 million RB by December 1. This figure marks a 15% increase compared to the same period last year.
On December 9, The Seam reported online sales of 5,851 bales priced at an average of 66.42 cents per pound. As of Monday, ICE cotton stocks totaled 1,236 bales, and certified stocks stood at 17,932 bales. The Cotlook A Index decreased by 100 points to 80.35 cents per pound on December 6. Meanwhile, the USDA Adjusted World Price (AWP) experienced a slight increase of 21 points last week, settling at 57.74 cents per pound.
Notable futures prices include:
- Mar 25 Cotton: Closed at 69.48 cents, down 47 points, currently down 32 points
- May 25 Cotton: Closed at 70.69 cents, down 50 points, currently down 34 points
- Jul 25 Cotton: Closed at 71.75 cents, down 50 points, currently down 36 points
On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data provided are solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
