Cotton Futures Experience Gains Amid Mixed Market Conditions

On Monday, cotton futures saw an encouraging uptick, with contracts rising by 28 to 121 points. The broader market presented mixed signals; notably, crude oil prices increased by $1.26 per barrel, while the US dollar index gained 498 points.

Cotton Crop Progress Shows Promising Developments

Recent Crop Progress data indicates that 94% of the US cotton crop has set bolls, positioning it 3% ahead compared to the five-year average. As of October 20, the harvest was 44% complete, which is 6 percentage points above the usual rate. Although condition ratings improved by 3% to 37% considered good or excellent, the Brugler500 index saw a slight increase to 295, reflecting a notable rise in very poor ratings.

Market Reports Detail Latest Sales and Stock Levels

On October 18, The Seam reported 540 bales sold online, averaging 62.15 cents per pound. Meanwhile, ICE cotton stocks remained stable as of Friday, with 174 bales available in certified stocks. The Cotlook A Index decreased by 45 points on October 18 to settle at 82.35 cents per pound. Additionally, the USDA Adjusted World Price (AWP) was lowered by 117 points to 59.24 cents per pound last Thursday.

Close of Cotton Futures for Upcoming Months

Mar 25 Cotton closed at 74.12, gaining 103 points.

May 25 Cotton closed at 75.5, up 97 points.

Jul 25 Cotton closed at 76.44, also rising by 97 points.

On the date of publication, Austin Schroeder did not hold any 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 information, please view the Barchart Disclosure Policy here.

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