Cotton futures saw a strong rally on Monday, with gains of 63 to 68 points in the nearby contracts. This surge was supported by a variety of factors, including a rebound in crude oil prices. Crude oil futures rose by 92 cents per barrel to $58.24, following news of the US capture of Venezuela President Maduro over the weekend. Additionally, the US dollar index was down slightly at $98.060.
The latest USDA Export Sales report, released on Monday morning, showed that a total of 133,996 RB of cotton was sold in the week ending on 12/25. Shipments were slightly lower than the previous week at 140,723 RB. Meanwhile, The Seam’s online auction reported sales of 4,796 bales on January 2 at an average price of 57.81 cents/lb. The Cotlook A Index remained steady at 74.30 cents, and ICE certified cotton stocks held steady at 11,510 bales on 1/2.
Furthermore, the Adjusted World Price for cotton was updated to 50.76 cents/lb last week, marking a 74-point increase from the previous week. The Loan Deficiency Payment (LDP) rate now stands at 1.24 cents. In terms of futures prices, Mar 26 Cotton rose by 68 points to 64.69, May 26 Cotton increased by 66 points to 66.03, and Jul 26 Cotton saw a 63-point gain to reach 67.35.
It is important to note that the information provided in this article is for informational purposes only. The author, Austin Schroeder, does not hold any positions in the securities mentioned. For more details and updates on cotton futures, please visit Barchart.com.
