Cotton Futures Market Update
Overview of Current Trends
Today, cotton futures are experiencing a generally downward trend, with most contracts declining by 45 to 50 points as midday approaches. However, the October contract stands out, showing a slight increase of 2 points amid low trading activity. Additionally, crude oil futures have dropped by 53 cents per barrel, while the US dollar index has risen by $0.401, reaching a level of 97.525.
Export Sales Commitments
As we draw near to the conclusion of the marketing year, total commitments for export sales have reached 11.768 million running bales, which accounts for 107% of the figures anticipated by the USDA. However, this is slightly behind the average pace of 116%. In terms of actual shipments, a total of 10.778 million running bales have been accomplished, representing 98% of the expected amount and surpassing the typical 95% pace.
Recent Sales Data
On Thursday, The Seam reported sales of 801 bales at an average price of 62.77 cents per pound. The Cotlook A Index has remained steady at 78.70 cents as of July 24. Furthermore, ICE cotton stocks saw a reduction of 18 bales due to decertification on July 24, bringing the certified stock level down to 21,617 bales. The USDA’s Adjusted World Price (AWP) increased by 23 points on Thursday, now standing at 54.95 cents per pound.
Contract Prices Overview
Taking a closer look at specific cotton contracts:
- October 2025 Cotton: Currently priced at 67.36, with an increment of 2 points.
- December 2025 Cotton: Currently at 68.25, reflecting a decrease of 46 points.
- March 2026 Cotton: Priced at 69.67, also down by 46 points.
This snapshot of the cotton futures market indicates a mix of slight gains and notable losses across various contracts, alongside fluctuations in other commodities like crude oil. The figures presented reflect ongoing market dynamics and the interplay of various economic data points that influence commodity trading.
