Cotton futures are trading higher, with contracts up 20 to 60 cents amid rising crude oil prices and a weaker US dollar. Export sales have reached 109% of the USDA forecast, slightly below the average pace, while ICE cotton stocks increased by 2,444 bales. The market will be closed on Monday for Memorial Day, delaying government reports until Tuesday.
Cotton futures are experiencing a positive trading session at midday Friday, with contracts appreciating by 20 to 60 cents. This upward movement is occurring alongside supportive macroeconomic factors, notably a 30-cent increase in crude oil prices and a significant decline in the US dollar index by $0.774 to $99.075. From a fundamental perspective, cumulative export sales commitments for cotton have reached 11.297 million running bales, which is 109% of the USDA's annual forecast, though this pace is slightly under the five-year average of 110%. On the supply side, ICE certified cotton stocks rose by 2,444 bales on May 22, bringing total certified stocks to 42,240 bales, potentially indicating increased availability. In contrast, the USDA's Adjusted World Price (AWP) for cotton was revised downwards by 38 points to 53.52 cents/lb as of Thursday. The market is heading into a holiday weekend, with closures on Monday for Memorial Day, which will also delay the release of government reports until the market reopens on Tuesday. Specific futures contracts reflect the day's gains, with July 25 Cotton at 66.23 cents (up 60 points), October 25 Cotton at 68.38 cents (up 20 points), and December 25 Cotton at 68.69 cents (up 43 points).
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