Cotton Futures Rise Amid Stable Stocks and Export Sales

Cotton futures show significant gains on Friday as total export commitments indicate strong demand, despite a slight decline compared to last year. Investors should analyze potential impacts on cotton-related stocks.

Date: 15-03-2025

AI Rating: 6

Cotton futures performance: Cotton futures achieved gains of 63 to 106 points as reported, providing a positive indication for this commodity. The price increases could enhance investor sentiment in cotton-related sectors.

Total export sales: The report highlights that total export sale commitments for US cotton stand at 10.124 million RB, down 5% from last year but representing 98% of the USDA's export projection. Despite being slightly lower than the previous year, meeting the USDA's estimates is a positive sign, as it indicates stability and demand.

Current pricing trends: The most recent online auction showcased 5,722 bales sold at an average price of 66.35 cents/lb. This illustrates robust auction activity, which may favorably influence market perceptions.

USDA Adjusted World Price (AWP): Furthermore, the USDA increased this week’s AWP by 188 points to 53.76 cents/lb., adding to the positive outlook on cotton prices. This rise can directly influence the revenue and profitability metrics of companies involved in cotton production and sales.

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