Cotton Futures Experience Midday Gains Amid Market Pressures

Cotton futures showed midday gains between 15 to 45 points on Monday, following the expiration of March futures today. However, outside market conditions presented challenges, as crude oil futures fell by 74 cents per barrel and the US dollar index rose by $0.048 during the trading session.

Market Positioning and Futures Data

The Commodity Futures Trading Commission (CFTC) reported that speculators increased their record net short position in cotton futures and options. As of March 4, these positions grew by an additional 11,504 contracts, with the total net short now at a record 79,957 contracts as of Tuesday.

Recent Auction Results and Price Metrics

In the latest auction held on Thursday by The Seam, a total of 1,936 bales were sold at an average price of 62.29 cents per pound. The Cotlook A Index rose by 150 points on March 6, reaching 76.95 cents per pound. As of March 7, ICE cotton stocks remained unchanged at 14,488 bales. Additionally, the USDA reduced their Adjusted World Price (AWP) by 201 points last Thursday to settle at 51.88 cents per pound.

Current Cotton Futures Prices

May 25 Cotton is trading at 66.22, reflecting an increase of 15 points.

Jul 25 Cotton has reached 67.42, up by 27 points.

Oct 25 Cotton is now priced at 68.62, gaining 42 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 information, please view the Barchart Disclosure Policy here.

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