Cotton Futures Show Mixed Movement Amid Market Pressures

Cotton prices exhibited mixed action on Monday morning. July contracts were down 8 points, while other contracts showed gains of 5 to 8 points. Last Friday’s market saw a significant rally, with cotton futures rising between 228 to 275 points, approaching the 3 cent limit. In the delivery May contract, which has no limits, the price surged by 457 points during the session. Despite this rally, the weekly losses for July contracts were curtailed to just 39 points.

Market Influences: Crude Oil and the US Dollar

Crude oil prices faced downward pressure, falling by 80 cents. This decline coincided with increasing speculation regarding a potential OPEC output increase. Additionally, the US dollar index dipped by $0.189, settling at 99.840.

Trader Commitments and Market Activity

According to Friday’s Commitment of Traders data, there was a reduction in the spec net short position, with a total of 11,206 contracts decreased to 26,231 contracts as of Tuesday.

The Seam Auction Results

The online auction held on Thursday by The Seam reported sales of 1,752 bales at an average price of 66.20 cents per pound. The Cotlook A Index fell by 50 points on Thursday, reaching a new level of 77.50 cents. ICE cotton stocks increased by 99 bales due to new certifications on May 1, bringing the certified stocks total to 14,577 bales. The USDA’s Adjusted World Price (AWP) rose by 6 points on Thursday afternoon to 54.94 cents per pound, valid through the following Thursday.

Closing Prices for Cotton Futures

Closing values for cotton futures on May 25:

• May 25 Cotton: closed at 70.18, up 457 points, currently unchanged.
• July 25 Cotton: closed at 68.41, up 275 points, currently down 8 points.
• Dec 25 Cotton: closed at 69.71, up 228 points, currently up 5 points.

On the date of publication, Austin Schroeder did not hold positions, either directly or indirectly, in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy.
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