Cotton Prices Experience Fluctuations Amid Market Updates

On Monday morning, cotton prices are rising between 93 to 160 points across most nearby contracts. This follows a challenging Friday, where futures recorded losses ranging from 115 to 144 points in the short-term contracts, with May futures down by 354 points last week. In other commodities, crude oil futures dropped by $4.63 per barrel, while the US dollar index climbed by $0.821 for the day.

Market Developments

The weekend saw little in the way of significant announcements impacting the market, aside from China imposing a 34% retaliatory tariff on all US goods.

CFTC Commitment of Traders Report

According to Friday’s CFTC Commitment of Traders report, managed money reduced their net short position in cotton futures and options by 7,176 contracts as of April 1. As of Tuesday, they held a net short position of 66,634 contracts.

Current Cotton Market Indexes

The Cotlook A Index decreased by 50 points on April 3, settling at 79.60 cents per pound. Meanwhile, ICE cotton stocks remained unchanged on April 2, holding steady at 14,488 bales. The USDA’s Adjusted World Price (AWP) saw an increase of 158 points to reach 55.22 cents per pound on Thursday afternoon.

Recent Cotton Closing Prices

As for the nearby contracts, the closing prices are as follows:

• May 25 Cotton: closed at 63.36 cents, down 144 points, currently up 164 points
• Jul 25 Cotton: closed at 64.56 cents, down 115 points, currently up 129 points
• Dec 25 Cotton: closed at 66.16 cents, down 139 points, currently up 119 points

At the publication date, Austin Schroeder did not hold any positions, either directly or indirectly, in the securities mentioned in this article. The information here is for informational purposes only. Please view the Barchart Disclosure Policy for more details.
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