Cotton Prices Plummet on Tuesday Morning
Cotton prices fell sharply on Tuesday morning, down 166 to 224 points across the front months. This reversal comes after futures had closed up 4 to 71 points at the end of the previous session.
The decline in cotton prices is in contrast to the rise in crude oil, which increased by 88 cents per barrel on the same day. The US dollar index also rose $0.232 higher.
Weekly Crop Progress data showed that 70% of the US cotton crop had bolls opening as of Sunday, with harvest levels at 17%, two percentage points ahead of normal.
The condition ratings for US cotton were pegged at 35% good/excellent, a one percentage point increase from the previous week. The Brugler500 index dropped by 1 point to 294.
Last week's US-China meeting resulted in China lifting tariffs on several US goods, including cotton.