Cotton Futures Show Upward Movement Amid Mixed Market Conditions

On Friday, cotton futures saw increases ranging from 25 to 35 points. Meanwhile, outside market conditions were varied, with the US dollar index rising by 505 points, reaching its highest level in two years. Additionally, crude oil futures gained $1.16 per barrel.

Export Sales Data Indicates Decline

Recent export sales data revealed that upland cotton shipments for the 2024/25 marketing year reached 1.858 million running bales (RB), marking a 17% decrease compared to last year. This figure represents only 18% of the USDA’s full-year export forecast, which typically stands at 22%. Overall commitments, which include both shipped and unshipped sales, amounted to 6.364 million RB, reflecting a 16% drop from the previous year. This total represents 60% of the USDA’s estimate, falling behind the standard export sales pace of 68%.

Market Activity Report

The Seam reported online sales of 12,433 bales on November 21, with an average price of 69.57 cents per pound. ICE cotton stocks remained stable on Wednesday at 13,274 bales of certified stocks. The Cotlook A Index saw an increase of 100 points on November 21, reaching 80.70 cents per pound. Notably, the USDA Adjusted World Price (AWP) was reduced by 229 points on Thursday afternoon, settling at 55.91 cents per pound.

Current Futures Prices

Mar 25 Cotton: 70.75, up 32 points

May 25 Cotton: 71.90, up 25 points

Jul 25 Cotton: 73.06, up 26 points

On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, in the securities mentioned in this article. The information presented here is intended solely for informational purposes. For additional details, please refer to the Barchart Disclosure Policy here.

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