Cotton Futures Show Early Gains After Previous Day’s Decline

Crop Progress Report Highlights Harvest Advances and Improved Conditions

Cotton prices are up between 50 to 61 points early on Wednesday, following a Tuesday close where futures dropped by 40 to 44 points. The external market presents a mixed picture, with crude oil down $2.92 per barrel and the US dollar index decreasing by 40 points.

According to Tuesday afternoon’s Crop Progress report from NASS, 88% of the US cotton crop now has bolls open, with 34% of the harvest completed, which is ahead of the 30% average pace. The overall condition of the crop improved by 5%, reaching 34% as of October 13, and the Brugler500 index saw an 11-point increase, now at 294.

The Seam reported 862 bales sold online on October 11, averaging 66.73 cents per pound. ICE cotton stocks fell by 91 points on Monday, leading to a total of 174 certified bales remaining. On October 11, the Cotlook A Index decreased by 45 points to 84.05 cents per pound. Additionally, the USDA Adjusted World Price (AWP) was lowered by 40 points last week to 60.41 cents per pound, valid through Thursday.

For the futures contracts: Mar 25 Cotton closed at 72.75, down 44 points, but is currently up 53 points; May 25 Cotton closed at 74.21, down 43 points, now up 50 points; and Jul 25 Cotton closed at 75.13, down 43 points, currently up 61 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 provided solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

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