Cotton Prices Surge Amid Positive Job Data and Market Trends

Cotton prices are extending early Friday morning gains into midday, increasing by 112 to 243 points. The nearby July contract leads this bullish momentum. In contrast, futures closed the previous Thursday session between 16 to 36 points lower. A strong US jobs report released this morning, indicating an unemployment rate unchanged at 4.2%, supports expectations for consumer demand.

Crude oil prices remain under pressure, with June futures declining nearly $1 per barrel, trading around $58. On a positive note, gold prices have risen sharply, up $18.70 per ounce in nearby May futures, possibly indicating a weekend risk premium.

Export Commitments and Market Data

Export commitments for cotton have reached 10.968 million RB, reflecting a 4% decrease compared to the same period last year. This figure represents 108% of the USDA’s export forecast and surpasses the average sales pace of 106%.

The online auction from The Seam on Wednesday reported sales of just 117 bales at an average price of 54.12 cents per pound. Additionally, the Cotlook A Index decreased by 50 points on Thursday, settling at 77.50. ICE cotton stocks remained steady on April 29, with certified stocks recorded at 14,478 bales. The USDA’s Adjusted World Price (AWP) rose by 6 points on Thursday afternoon to 54.94 cents per pound, remaining effective through next Thursday.

Current Market Prices

May 25 Cotton is at 65.61, down 16 points.

Jul 25 Cotton is at 68.12, up 246 points.

Dec 25 Cotton is at 69.49, up 206 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 in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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