Cotton Futures Rally: Key Market Update

On Monday, cotton futures showed a strong recovery, with contracts climbing 88 to 136 points. Mixed signals were present in the outside markets, as the US dollar index increased by 494 points and crude oil rose by 15 cents per barrel.

Sales and Inventory Status

The Seam reported 2,689 bales of online sales on December 20, with an average price of 57.36 cents per pound. As for cotton stocks, ICE reported no change last Friday, holding steady at 20,113 bales of certified stocks. The Cotlook A Index dropped by 20 points on December 20, landing at 78.15 cents per pound. Additionally, the USDA Adjusted World Price (AWP) experienced a decrease of 113 points last week, settling at 55.09 cents per pound, valid through Thursday.

Futures Prices Overview

Mar 25 Cotton closed at 69.42, marking an increase of 136 points.

May 25 Cotton ended at 70.47, up by 130 points.

Jul 25 Cotton finished at 71.36, gaining 124 points.

On the date of publication, Austin Schroeder did not hold any direct or indirect positions in the securities mentioned in this article. All information and data provided are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.