Cotton Market Update: Prices Recover After Wednesday’s Decline

Cotton prices increased by 35 to 48 points Thursday morning. This rebound follows a decline seen in Wednesday’s session, where futures contracts dropped by 40 to 59 points across most nearby contracts. Outside market influences, including falling crude oil prices and a strengthening US dollar, contributed to the earlier pressure on cotton futures. Crude oil futures decreased by 10 cents per barrel, while the US dollar index rose by $0.202.

USDA Cotton Estimates for 2025 Released

The USDA provided its preliminary estimates for the 2025 cotton crop during their Outlook Forum this morning. They projected cotton acreage will remain steady at 10 million acres, with ending stocks estimated at 4.8 million bales.

Recent Online Sales and Cotton Pricing Updates

On February 25, The Seam reported 3,282 bales sold online, at an average pricing of 62.14 cents per pound. The Cotlook A Index experienced a revival, gaining 60 points on February 24 to reach 78.50 cents per pound. ICE cotton stocks were steady at 1,732 bales of certified stocks as of Tuesday. Notably, the USDA raised the Adjusted World Price (AWP) last week by 68 points to 54.67 cents per pound, with an update expected later today.

Current Cotton Futures Status

The following updates reflect the current state of cotton futures:

• Mar 25 Cotton: Closed at 65.37, down 59 points; currently up 39 points.
• May 25 Cotton: Closed at 66.87, down 50 points; currently up 41 points.
• Jul 25 Cotton: Closed at 67.87, down 43 points; currently up 48 points.

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

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