Cotton futures closed lower on Tuesday, with July 24, December 24, and March 25 contracts seeing losses of 74, 40, and 37 points, respectively. This decline coincided with a 6% drop in U.S. crop good/excellent ratings to 50% and a decrease of 4,818 bales in ICE certified stocks. While the Cotlook A Index fell by 175 points to 82.95 cents/lb, the USDA Average World Price (AWP) rebounded by 1.58 cents to 58.23 cents per pound.
Cotton futures closed lower across all contracts on Tuesday, with July 24, December 24, and March 25 contracts declining by 74, 40, and 37 points respectively, reflecting a mildly negative market sentiment. This downward movement occurred amidst mixed external factors, including a $0.32/barrel drop in crude oil and a 212-point decrease in the dollar index. Supply-side indicators present a nuanced picture; weekly Crop Progress data showed a 6% drop in U.S. good/excellent cotton ratings to 50%, with significant declines in Texas (9 points) and Georgia (14 points), suggesting potential yield concerns. However, boll setting progress in both Texas (13%) and Georgia (12%) was reported 2% above normal, indicating early development. Further, ICE certified cotton stocks decreased by 4,818 bales to 54,217 bales as of July 1, which could offer some support to prices by tightening immediate supply. Globally, the Cotlook A Index fell by 175 points to 82.95 cents/lb, signaling weaker international demand or increased supply. Conversely, the USDA Average World Price (AWP) rebounded by 1.58 cents to 58.23 cents per pound, effective through July 4, with the next announcement scheduled for July 5.
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Request a DemoOverall Sentiment
mildly negative
Sentiment Score
-0.30
Ticker Sentiment
