On Wednesday, cotton futures experienced significant increases, with improvements ranging from 126 to 181 points across most contracts. This surge occurred despite unfavorable conditions in the broader market, highlighted by a $2.03 drop in crude oil prices per barrel and an uptick of $1.015 in the US dollar index, which reached 99.705.
The rise in cotton prices can partly be attributed to ongoing discussions suggesting a reduction in trade tensions with China, although no formal agreements have been announced as of yet.
In a recent report, The Seam revealed that on April 22, a total of 2,639 cash bales were sold online at an average price of 66.93 cents per pound. Additionally, the Cotlook A Index had a slight increase of 50 points on Tuesday, reaching 78.10 cents per pound. As of April 22, ICE cotton stocks remained stable, with certified levels holding at 14,478 bales. Meanwhile, the USDA’s Adjusted World Price (AWP) saw an increase of 33 points last Thursday, bringing it to 53.43 cents per pound.
In terms of specific contract performance, May 25 Cotton closed at 68.75, marking an increase of 171 points. The July 25 Cotton contract ended at 69.03, up by 181 points, while December 25 Cotton closed at 69.97, gaining 126 points.
This information is provided solely for informational purposes and does not constitute trading advice. It’s essential to evaluate all market data critically before making investment decisions.
