Cotton Futures Decline Amid Mixed Market Signals

Cotton futures have decreased by 20 to 30 points as trading continues through midday. Crude oil prices are experiencing losses of $1.36 per barrel. Concurrently, the US dollar index has fallen by $0.108 to reach 100.765.

USDA Export Sales Report Highlights Strong Demand

The USDA’s Export Sales report reveals that a total of 122,192 running bales (RB) of 2024/25 upland cotton were sold for the week ending May 8, reaching a four-week high. Vietnam led the purchases with 95,600 RB, followed by Bangladesh with 26,200 RB. New crop activity totaled 34,232 RB, with Honduras accounting for 25,400 RB of that figure. However, export shipments for the week were reported at 329,176 RB, marking a three-week low. Vietnam received 120,800 RB, while Pakistan and Turkey imported 66,200 RB and 51,900 RB, respectively.

Auction Highlights and Price Trends

In the Monday online auction from The Seam, 1,145 bales were sold at an average price of 59.55 cents per pound. The Cotlook A Index decreased by 25 points on Wednesday, settling at 78.00. ICE cotton stocks remained steady as of May 14, with a certified stock level of 33,100 bales. The USDA’s Adjusted World Price (AWP) also fell by 13 points last Thursday to 54.81 cents per pound. An update on the AWP is expected later today.

Current Cotton Futures Prices

Jul 25 Cotton is currently at 65.26, down 22 points.

Oct 25 Cotton stands at 68.05, reduced by 32 points.

Dec 25 Cotton is at 68.05, showing a decline of 20 points.

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

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