Cotton Futures Decline While Crude Oil Prices Recover

Cotton futures saw a drop on Friday, closing down 8 to 15 points. For the week, July contracts fell by 180 points. In contrast, crude oil prices increased by $1.14 per barrel. The US dollar index decreased by $0.235, settling at 100.255.

CFTC Data Update

Recent data from the CFTC revealed that speculators reduced their net short positions by another 5,182 contracts as of May 6, resulting in a total of 21,049 contracts.

USDA Export Sales Report

According to the USDA’s Export Sales report, current cotton export commitments stand at 11.033 million running bales, marking a 5% decline compared to last year. This amount is also 108% of the USDA’s export forecast for the 2024/25 marketing year, aligned with the average pace of 108%.

Market Insights

The online auction on Thursday from The Seam reported sales of 797 bales at an average price of 55.13 cents per pound. The Cotlook A Index fell by 5 points to 78.95 on Wednesday. Additionally, ICE cotton stocks decreased by 416 bales as of May 8, reflecting a mix of new certifications and decertifications, with certified stock levels at 16,721 bales. The USDA’s Adjusted World Price (AWP) decreased by 13 points on Thursday, reaching 54.81 cents per pound.

Cotton Contract Closings

July 25 Cotton closed at 66.61, down 8 points.

October 25 Cotton closed at 68.8, down 11 points.

December 25 Cotton closed at 68.67, down 8 points.

On the date of publication, Austin Schroeder did not hold any positions, either directly or indirectly, in the securities mentioned in this article. All information and data herein are provided for informational purposes. For further details, please review the Barchart Disclosure Policy here.

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