Cotton Prices Surge: A Strong Start to the Week

Crude Oil Rises as Spec Traders Shift Positions

Cotton prices are beginning the week on a positive note, climbing between 54 and 73 points on Monday morning. Meanwhile, crude oil futures are up by 28 cents per barrel, while the US dollar index remains steady so far today.

Market Updates from CFTC and USDA

Recent data from the CFTC’s weekly Commitment of Traders report indicates that speculators have reduced their net short position in cotton futures and options by a total of 3,095 contracts, bringing the total to 57,386 contracts as of February 18.

This week, the USDA is set to release preliminary estimates for the 2025 cotton crop during their Outlook Forum. A Bloomberg survey forecasts an average of 10 million planted acres for cotton this year, with estimates ranging from 8.8 to 10.8 million acres. This figure marks a decline from last year’s 11.2 million acres.

ICE Stocks and Price Movements

As of Friday, ICE cotton stocks remained stable at 1,732 bales of certified stocks. The Seam reported online sales of 5,276 bales on February 21, with an average price of 62.13 cents per pound. Additionally, the Cotlook A Index fell by 25 points on Thursday, settling at 78.05 cents per pound. The USDA raised their Adjusted World Price (AWP) by 68 points last Thursday, bringing it to 54.67 cents per pound.

Current Cotton Futures Prices

Mar 25 Cotton is priced at $66.81, marking an increase of 73 points.

May 25 Cotton stands at $67.93, a rise of 59 points.

Jul 25 Cotton is listed at $68.85, up by 54 points.

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