Cotton Futures Experience Mixed Results Post-Holiday

Market Movements Indicate Volatility and External Influences

Cotton prices emerged from the Christmas holiday with contracts showing an increase of 15 to 21 points. However, a decline hit the market on Tuesday, with futures dropping between 14 to 64 points. Meanwhile, the wider market presented mixed signals; the US dollar index surged by 193 points, and crude oil prices crept up by $0.93 per barrel.

The Seam recorded 16,232 bales of online sales on December 23, with an average price of 61.50 cents per pound. Additionally, ICE cotton stocks remained steady with 20,113 bales of certified stocks reported on Monday. The Cotlook A Index, a key global benchmark, increased by 15 points to reach 78.30 cents per pound on December 23. However, the USDA Adjusted World Price (AWP) saw a reduction of 113 points last week, settling at 55.09 cents per pound, valid through Thursday.

Mar 25 Cotton closed at 68.78 cents, down 64 points, but is currently up by 21 points.

May 25 Cotton ended at 69.88 cents, a decrease of 59 points, with a current uptick of 19 points.

Jul 25 Cotton closed at 70.85 cents, down 51 points, and is presently up 18 points.

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

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