Cotton Prices Soar on Dry Conditions and Global Trends

Cotton futures surged on Wednesday, with contracts ranging from 243 to 294 points higher across the front months. Deferred contracts also saw gains, increasing by 53 to 110 points. Crude oil prices rose $1.90, while the US dollar index decreased by $0.809.

The ongoing dryness in Texas is expected to continue for much of the next week, according to the National Oceanic and Atmospheric Administration's (NOAA) 7-day quantitative precipitation forecast (QPF). The Cotlook A Index was up 70 points on August 18, reaching 96.00 cents.

Cotton stocks certified by ICE were down 1,986 bales on Tuesday, leaving the total at 70,643 bales. The Adjusted World Price increased by 190 points last week to 68.19 cents per pound and remains in effect until Thursday.