Cotton futures continued their upward trajectory on Monday, posting solid gains of 170 to 190 points across most active contracts. Meanwhile, crude oil prices rose by $2.38 per barrel, and the US dollar index fell by $0.248.
According to the latest Commitment of Traders (COT) data, managed money funds increased their net long position in cotton futures and options by 17,173 contracts for the week ending August 25. As of Tuesday, the net long position reached 95,841 contracts.
Market fundamentals showed robust physical activity, with The Seam reporting sales of 2,987 bales on Friday at an average price of 82.62 cents per pound. The Cotlook A Index climbed 300 points to settle at 101.30 cents on August 28. Additionally, ICE certified cotton stocks decreased by 3,149 bales on August 28, leaving certified stocks at 63,178 bales. The Adjusted World Price was also raised by 190 points to 71.52 cents per pound.
Specific contract closes included October 26 Cotton at 91.66, up 174 points; December 26 Cotton at 93.19, up 181 points; and March 27 Cotton at 95.20, up 186 points.
