Cotton Futures Rally While Crude Oil Prices Decline
Cotton futures experienced a strong uptrend on Friday, with contracts rising between 228 to 275 points, nearing the 3 cent limit. In the May delivery market, where limits do not apply, prices surged by 457 points during the session. This rally helped to restrict weekly losses for July cotton to just 39 points. Meanwhile, crude oil prices faced downward pressure, falling by 80 cents as speculation about an OPEC output increase grows. Additionally, the US dollar index decreased by $0.189, settling at 99.840.
Investor Position Changes
According to the Commitment of Traders data released Friday afternoon, there was a total reduction of 11,206 contracts from the spec net short position, which now stands at 26,231 contracts as of Tuesday.
Cotton Export Commitments
In recent developments, cotton export commitments have reached 10.968 million RB, reflecting a 4% decline compared to the same period last year. Notably, this figure constitutes 108% of the USDA export forecast and exceeds the average sales pace of 106%.
Market Activity and Statistics
The latest online auction from The Seam on Thursday recorded 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, settling at 77.50. Additionally, ICE cotton stocks rose by 99 bales on new certifications as of May 1, with certified stock levels reaching 14,577 bales. The USDA’s Adjusted World Price (AWP) increased by 6 points on Thursday afternoon to 54.94 cents per pound and will remain in effect until next Thursday.
Closing Prices
May 25 Cotton: Closed at 70.18, up 457 points.
Jul 25 Cotton: Closed at 68.41, up 275 points.
Dec 25 Cotton: Closed at 69.71, up 228 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 are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy.
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