Cotton Falling on Tuesday

Austin Schroeder Barchart Tue Mar 4, 7:43AM CST
Cotton on branches by Marina Fedorova via iStock

Cotton futures are down 100 to 198 points so far on Tuesday morning. Prices closed out the Monday session with contracts up 20 to 26 points. The outside markets are mixed factors. Crude oil futures were down $1.35/barrel, with the US dollar index falling $1.078 on the day. 

In response to the additional 10% tariff on Chinese goods, China has issued a 15% tariff on imports of US cotton. For reference, there is 250,100 RB in unshipped sales to China. 

Monday’s Cotton Systems report showed 259 RB of cotton consumed during January, with Jan 31 stocks at 601 RB.

The Seam showed 710 bales in online sales on February 28, with an average price of 47.89 cents/lb. The Cotlook A Index was down another 25 points on 2/28 at 77.25 cents/lb. ICE cotton stocks were unchanged again on Friday with the current level of certified stocks at 12,653 bales. The USDA cut back their Adjusted World Price (AWP) on Thursday afternoon by 78 points to 53.89 cents/lb. 

Mar 25 Cotton  closed at 64.14, up 26 points, currently down 41 points

May 25 Cotton  closed at 65.51, up 26 points, currently down 198 points

Jul 25 Cotton  closed at 66.62, up 23 points, currently down 194 points


On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.