Cotton Futures Plummet as Crude Oil and Dollar Index Rise

Cotton futures suffered losses on Monday, marking a decline in value across various contracts. The price of cotton fell between $23 to $174 per contract, with some contracts experiencing more significant drops than others. This comes as crude oil prices rose by $1.84 per barrel, while the US dollar index also increased by $0.609.

The latest Weekly Crop Progress data revealed that 57% of the US cotton crop had bolls opening as of Sunday, with 8% already harvested. Condition ratings for the crop were at 36% good/excellent, a 2 percentage point increase from the previous week. Poor/very poor ratings, however, rose by 2%, contributing to a steady Brugler500 index at 298.

The Cotlook A index rebounded with a 100-point gain on Friday, reaching 98.20. In contrast, ICE certified cotton stocks decreased by 3,164 bales on September 11, bringing the total stock level to 38,462 bales. The Adjusted World Price dropped by 441 points last week to 69.51 cents/lb.

Closing prices for specific contracts were as follows: Oct 26 Cotton at 80.64 (down $174), Dec 26 Cotton at 84.55 (down $151), and Mar 27 Cotton at 87.12 (down $144).