Cotton futures are experiencing another drop on Tuesday, with prices falling between 60 to 77 points. This decline comes as crude oil prices rise by 79 cents per barrel, reaching $68.72. Additionally, the US dollar index has increased by $0.144, reaching $97.285.
Recent Weekly Crop Progress data has shown that the US cotton crop is currently at 48% squared, with 14% setting bolls. Both of these figures are 1% behind the average. Condition ratings have improved by 1% to 52% good to excellent, while the Brugler500 index remains stable at 336.
In terms of market activity, Commitment of Traders data reveals a reduction of 5,175 contracts in the net short position in cotton futures and options for the week ending on July 1. This brings the net short position to 42,910 contracts.
The Cotlook A Index remained unchanged on July 7 at 79.15. ICE cotton stocks have decreased by 2,335 bales through decertification, with certified stocks currently standing at 37,989 bales. The USDA’s Adjusted World Price (AWP) has seen an increase of 116 points, reaching 55.34 cents per pound.
Closing prices for cotton futures on July 25 are as follows: Jul 25 Cotton closed at 65.39, down 27 points, Oct 25 Cotton closed at 66.02, down 77 points, and Dec 25 Cotton closed at 67.29, down 60 points.
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 further details, the original article can be found on Barchart.com.
