Cotton Futures Surge as Harvest Progresses Ahead of Schedule
Cotton futures rallied at the start of the week, with contracts closing between 103 to 222 points higher across different expiries. This uptick in cotton prices contrasted with a decline in crude oil, which dropped by $1.81 per barrel, while the US dollar index edged up by $0.178.
The weekly Crop Progress report indicated that 74% of the US cotton crop had bolls opening as of Sunday, with harvest progress at 23%, slightly ahead of the normal pace. However, condition ratings dipped by 2 percentage points to 33% good/excellent. The Brugler500 index fell by 4 points to 290.
Market activity included The Seam reporting sales of 1,109 bales on Friday, averaging 74.16 cents per pound. The Cotlook A index declined by 80 points on October 2 to 88.35, and ICE certified cotton stocks decreased by 5,777 bales, bringing the total to 22,240 bales. The Adjusted World Price also fell by 93 points last week to 65.16 cents per pound.
Cotton futures for October 26 closed at 77.13, up 198 points, December 26 cotton settled at 80.86, also up 198 points, and March 27 cotton rose by 217 points to 83.71.