Cotton Futures Rise Despite Mixed Economic Signals

As of midday Friday, cotton futures are showing gains of 67 to 81 points. However, outside market pressures are significant, with the US dollar index climbing by 313 points and crude oil prices dropping by $0.42 per barrel. Note that markets and government offices will be closed on Monday in observance of Martin Luther King Jr. Day, resuming a normal schedule on Tuesday.

Recent Export Sales and Their Impact

For the week ending January 9, export sales data revealed that 316,248 running bales (RB) of upland cotton were sold. Current total sales commitments, including shipments, stand at 8.068 million RB. This figure represents 78% of the USDA’s export projection for the 2024/2025 season, but is significantly lower than the average sales pace of 882%.

Online Sales and Market Indicators

On January 16, The Seam reported 4,510 bales sold online at an average price of 57.66 cents per pound. Meanwhile, ICE cotton stocks remained stable at 218 bales of certified stock as reported on Thursday. The Cotlook A Index experienced a rise of 30 points to reach 78.15 cents per pound on January 16, while the USDA Adjusted World Price (AWP) decreased by 68 points the same afternoon, landing at 53.98 cents per pound.

Current Cotton Futures Prices

March 2025 Cotton is currently priced at 67.54, reflecting an increase of 81 points,

May 2025 Cotton is at 68.55, up 70 points,

July 2025 Cotton is trading at 69.55, which is up 67 points.

At the time of publication, Austin Schroeder did not hold any direct or indirect positions in the securities mentioned in this article. All information provided is for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.

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