On Tuesday, the cotton futures market experienced a mixed reaction, with many contracts dropping between 8 and 16 points, while the thinly traded October contract saw a modest rise of 2 points. Concurrently, crude oil prices increased by 85 cents per barrel, and the US dollar index rose $0.575, reaching 99.210.
According to the latest Crop Progress report released on Monday, a total of 66% of the cotton crop in the United States has been planted, which trails the normal pace by 3 percentage points. In Texas, the planting rate aligns with the five-year average at 61%, whereas Georgia is lagging behind the average by 3 points, currently at 74%. The quality ratings for the crop indicate that 49% are classified as good to excellent, which is 12% lower than the previous year's figures. The Brugler500 index registered a score of 324, marking the lowest initial crop rating since 2013. In Texas, the ratings have recorded the lowest values in three years, beginning at 298, with only 38% rated as good to excellent.
The auction results from The Seam on Monday displayed a total of 1,174 bales sold, resulting in an average price of 61.89 cents per pound. The Cotlook A Index saw an increase of 20 points, reaching 77.45 as of June 2. Additionally, ICE cotton stocks rose by 10,694 bales as new certifications were added, bringing the certified stock level to 53,700 bales. The USDA's Adjusted World Price (AWP) also experienced a rise, climbing 32 points last week to settle at 53.84 cents per pound, valid through Thursday.
The July 25 cotton contract ended at 66.05, facing a decrease of 8 points.
The October 25 cotton contract concluded at 68.11, which represents an increase of 2 points.
The December 25 cotton contract closed at 68.53, down 16 points.
These fluctuations highlight the ongoing volatility in the cotton market, influenced by planting rates, weather conditions, and global price movements.
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