Cotton futures are showing early Thursday gains of 59-70 points across contracts, rebounding from minor losses on Wednesday, supported by a weaker US dollar and higher crude oil prices. While the Cotlook A Index and ICE certified stocks remained steady, the market's current trajectory suggests a short-term bullish sentiment influenced by broader macroeconomic factors.
Cotton futures are demonstrating notable strength in early Thursday trading, with contracts gaining between 59 and 70 points, effectively reversing the modest losses of 9 to 23 points from the prior session. This upward momentum is primarily attributed to supportive macroeconomic factors rather than a fundamental shift in the physical cotton market. Specifically, a decline in the U.S. dollar index to $98.085 and a $0.61 increase in crude oil futures are providing tailwinds, as a weaker dollar enhances the appeal of U.S. commodities to foreign buyers. Meanwhile, core physical market indicators remain stable, suggesting the rally is technically and externally driven. The Cotlook A Index was unchanged at 78.90 cents, and ICE certified stocks held steady at 15,474 bales, indicating no immediate tightening of deliverable supply. The market awaits the updated USDA Adjusted World Price (AWP), which rose 48 points to 55.53 cents/lb last week, for further direction.
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moderately positive
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