Cotton futures declined sharply in Thursday’s midday session, with contracts shedding 65 to 96 points. The selloff coincided with a stronger U.S. dollar and a rebound in crude oil prices, which rose $1.88 per barrel. The dollar index advanced $0.975 to 100.410, adding pressure to the fiber market.
Weekly export data from the USDA revealed tepid demand. For the week ending May 1, net sales of 2024/25 cotton totaled 65,764 running bales, including 37,376 bales for the new crop—the lowest combined weekly total since early October. Vietnam led old-crop purchases at 30,500 bales, while Mexico topped new-crop buying with 30,700 bales. Shipments, however, surged to an eight-week high of 394,872 bales, with Vietnam receiving 117,300 bales and Pakistan taking 88,800 bales.
The Seam’s Wednesday online auction moved 1,350 bales at an average price of 62.31 cents per pound. The Cotlook A Index fell 55 points to 79.45. ICE-certified cotton stocks rose by 3,088 bales on May 7, bringing the total to 17,137 bales. The USDA’s Adjusted World Price increased 6 points last week to 54.94 cents per pound and is slated for update later today.
Key contract levels at midday:
- Jul 25 Cotton: 66.42, down 96 points
- Oct 25 Cotton: 68.45, down 95 points
- Dec 25 Cotton: 68.56, down 69 points
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