Cotton Futures Experience Decline Amid External Market Pressures

Cotton futures ended Wednesday’s trading session with most nearby contracts decreasing by 40 to 59 points. Factors from outside markets contributed to this downward trend; crude oil futures dropped by 10 cents per barrel, while the U.S. dollar index rose by $0.202 during the day.

Upcoming USDA Estimates

The USDA is set to release its initial estimates for the 2025 cotton crop in the Outlook Forum scheduled for Thursday. A Bloomberg survey of analysts suggests an average of 10 million acres will be planted in cotton this year. This figure falls within a range of 8.8 to 10.8 million acres, a decline from 11.2 million acres planted last year.

Market Highlights

The Seam reported online sales of 3,282 bales on February 25, with an average price of 62.14 cents per pound. The Cotlook A Index increased by 60 points to reach 78.50 cents per pound as of February 24. ICE cotton stocks remained steady on Tuesday at 1,732 bales of certified stocks. Additionally, the USDA raised the Adjusted World Price (AWP) last week by 68 points to 54.67 cents per pound, with an update expected Thursday afternoon.

Closing Prices for Cotton

Mar 25 Cotton closed at 65.37, down 59 points.

May 25 Cotton closed at 66.87, down 50 points.

Jul 25 Cotton closed at 67.87, down 43 points.

On the date of publication, Austin Schroeder did not have (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.

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