Cotton Prices Plummet on Turnaround Tuesday

Cotton prices dropped significantly on Turnaround Tuesday, with losses ranging from 115 to 169 points at market close. The US dollar index rose by $0.235, while crude oil gained $4.92 per barrel. The Weekly Crop Progress data showed that 89% of the US cotton crop had set bolls as of Sunday, and 29% of those bolls were open. Condition ratings for the crop improved slightly, with 39% rated good or excellent.

The Brugler500 index fell by another 2 points to 302, due in part to a rise in poor/very poor ratings, which increased by 3%. Ratings in Texas dropped by 2 points to 260. The Seam reported cotton sales of 75 bales on August 31 at an average price of 85.63 cents per pound. ICE certified cotton stocks remained unchanged at 63,178 bales.

The Adjusted World Price rose by another 190 points last week to 71.52 cents per pound. October and December cotton contracts closed at 90.01 and 91.55, respectively, with losses of 169 and 159 points. The March contract fell by 146 points to close at 93.68.