Cotton Futures Post Slight Uptick as Market Navigates Mixed Signals

Cotton futures delivered modest gains on Thursday, advancing 8 points across front-month contracts at the closing bell. The slight upward momentum reflected broader commodity market dynamics, with crude oil climbing 8 cents per barrel to $56.02, while the US dollar index strengthened by $0.093 to $98.095.

Export Activity Paints a Complex Picture

Weekly export data revealed 135,886 RB of cotton sold during the week ending 11/27, marking the lowest level in four weeks. However, shipments told a different story, reaching 122,094 RB—a three-week high. The slight disconnect between sales and shipments underscores shifting market patterns.

Year-to-date performance shows concerning trends in export commitments, which stand at 5.72 million RB—down 16.53% compared to the same period last year. The decline is primarily driven by weaker sales activity, despite shipments tracking 7.61% higher at 2.3 million RB during the marketing year.

Market Pricing and Index Movement

Thursday’s online auction conducted through The Seam resulted in sales of 14,934 bales priced at an average of 60.84 cents/lb. The Cotlook A Index retreated 90 points on December 17, closing at 73.00 cents. The Adjusted World Price was trimmed to 49.99 cents/lb this afternoon, representing a 40-point decline from the previous week.

Contract Performance

Contract-month futures demonstrated consistent strength across the board. Mar 26 Cotton futures finished at 63.51, up 8 points, while May 26 Cotton closed at 64.61, also up 8 points. Jul 26 Cotton completed the trio with a close at 65.66, up 8 points.

ICE certified cotton stocks remained flat on December 17, holding steady at 12,396 bales, indicating stable supply positioning in the certified inventory channel.