Cotton Futures Dive as Old Crop Plummets
The cotton market experienced a downward trajectory on Tuesday, with futures prices seeing a mixed finish after struggling throughout the day. New crop values managed to maintain some ground, closing up between 15 to 21 points. However, the old crop market faced a significant downturn, recording a triple-digit decline in prices. May cotton, in particular, had a volatile day, fluctuating within a 240-point range mostly colored in red hues.
Market Indicators and Insights
The Cotlook A Index registered a 5-point decrease, settling at 98.40 cents per pound. According to USDA’s weekly Cotton Market Review, a total of 11,320 bales were sold at an average price of 89.25 cents per pound. Additionally, the updated AWP stands at 76.10 cents per pound for the current week ending on Thursday. ICE certified stocks saw an increase of 1,100 bales, reaching a total of 27,765 as of 3/13.
May 24 Cotton closed at 93.34, marking a 123-point decline, while Jul 24 Cotton closed at 93.12, down by 114 points. On the contrary, Dec 24 Cotton showed some resilience by closing at 84, up by 19 points.
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