Cotton futures are currently experiencing losses in the front months, with contracts down 70 to 80 points. This decline comes amidst a backdrop of rising crude oil prices, which have surged $3.50 following the US/Israel strikes on Iran over the weekend. However, it is worth noting that crude oil is nearly $5 off its overnight highs. In addition, the US dollar index is on the rise, gaining $0.875 to reach $98.440.
According to Commitment of Traders data from Friday afternoon, there has been a reduction of 14,140 contracts from the spec fund net short position as of Tuesday. This has brought the total down to 65,368 contracts.
The latest figures from The Seam show that 3,011 bales were sold on February 27, averaging 62.83 cents/lb. Meanwhile, the Cotlook A Index has dipped by 80 points to 75.65 cents. In terms of ICE certified cotton stocks, there was an increase of 6,721 bales on February 26, bringing the certified stocks level to 126,178 bales. Additionally, the Adjusted World Price saw a 1.79 cent increase last week, reaching 51.84 cents/lb.
In terms of specific cotton futures, Mar 26 Cotton is currently trading at 63.61, up 25 points. May 26 Cotton is at 64.81, down 80 points, and Jul 26 Cotton is at 66.58, down 74 points.
It is important to note that on the date of publication, Austin Schroeder did not have any positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data provided in this article are for informational purposes only. This article was originally published on Barchart.com.
For more information and updates on the cotton market, please visit Barchart.com.
