Cotton Futures Decline as Market Shows Mixed Signals

Cotton futures experienced modest declines on Friday, with October futures down 38 points. Crude oil prices decreased by $0.67, while the US dollar index increased by $0.161, reaching $99.370.

Export Sales Report Highlights Weak Demand

For the week ending May 22, export sales data revealed a three-week low of 118,658 running bales (RB) of cotton sold. Vietnam emerged as the largest buyer, purchasing 65,600 RB, followed by Bangladesh with 17,300 RB. New crop sales accounted for 13,822 RB, while shipments rose to 275,379 RB for the same week. The primary destination for shipments was Vietnam at 117,000 RB, with 34,300 RB sent to Pakistan.

Market Transaction Updates

An online sale on Wednesday from The Seam reported 450 bales sold at an average price of 66.34 cents per pound. The Cotlook A Index fell by 25 points on May 28, settling at 77.70. ICE cotton stocks increased by 1,143 bales due to new certifications on May 29, bringing certified stock levels to 43,006 bales. USDA’s Adjusted World Price (AWP) dropped by 38 points last Thursday to 53.52 cents per pound but was not updated again that day.

Current Cotton Prices

Prices for cotton contracts are as follows: Jul 25 Cotton at 64.84 (unchanged), Oct 25 Cotton at 66.86 (down 38 points), and Dec 25 Cotton at 67.66 (down 10 points).

On the date of publication, Austin Schroeder did not hold positions in any of the securities mentioned. All information in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy.

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