Cotton futures posted losses of 8 to 25 points across most contracts on Tuesday, with Dec 25, Mar 26, and May 26 contracts declining to 63.51, 65.09, and 66.31 cents respectively. This downward movement occurred alongside a $0.215 drop in the US dollar index and an $0.85/barrel decrease in crude oil. Further reflecting market sentiment, the Cotlook A Index fell 75 points to 75.30 cents on Friday, while ICE certified cotton stocks increased by 122 bales to 16,593 bales on October 13.
Cotton futures posted significant losses across most contracts on Tuesday, with declines ranging from 8 to 25 points. The December 2025 contract fell to 63.51 cents, and the May 2026 contract dropped to 66.31 cents, indicating a strong bearish trend. This broad-based downturn signals a pervasive negative sentiment in the cotton market. This negative sentiment is corroborated by other market indicators. The Cotlook A Index decreased by 75 points to 75.30 cents on Friday, and ICE certified cotton stocks increased by 122 bales to 16,593 bales, suggesting ample supply or weakening demand. The online auction from The Seam also reflected soft pricing, with 628 bales selling at an average of 60.94 cents/lb. These declines occurred even as the US dollar index fell $0.215 to $98.815, which typically supports commodity prices. The simultaneous $0.85/barrel drop in crude oil may reflect broader concerns about global economic activity, contributing to the overall bearish pressure on commodities. The confluence of these factors points to fundamental weakness in the cotton sector.
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strongly negative
Sentiment Score
-0.70
Ticker Sentiment
