Cotton futures declined by 93 to 117 points on January 23, 2023, with March contracts settling at 62.64 cents per pound and May contracts at 64.4 cents. This drop coincided with a decrease in crude oil futures, which fell by $1.45 per barrel to $60.93, and the US dollar index, down $0.584 to 96.820.
According to USDA Export Sales data released on January 15, cotton commitments reached 7.35 million running bales, marking a 13% decrease from last year and representing only 64% of the USDA’s projected total. Furthermore, managed money in cotton futures and options expanded their net short position to 51,952 contracts, adding 1,580 contracts as of January 23.
On a related note, The Seam reported an online auction with sales at 57.99 cents per pound for 5,645 bales. ICE certified cotton stocks decreased by 510 bales to a total of 9,912 bales, while the Adjusted World Price was updated to 50.99 cents per pound, down 18 points from the previous week.
