Cotton Market Update

Price Trends:

  • July futures saw modest gains throughout the week, closing at 78.60 cents per pound, a 298-point increase.
  • An early-week rebound occurred, likely due to a correction from being oversold.
  • However, prices faced resistance around 80.00 cents per pound.

Market Influences:

  • Continued weakness in the Chinese market and speculators’ net short positions exerted downward pressure.
  • Anticipation of the WASDE report also contributed to market pressure.
  • Trading volumes increased towards the end of the week, and the decertification of 18,142 bales provided some support.

WASDE Report Highlights (2024/25 Estimates):

  • U.S. crop: Predicted to be 16.0 million bales.
  • U.S. exports: Forecast at 13.0 million bales.
  • World use: Expected to increase to 116.86 million bales.
  • World ending stocks: Set to increase to 83.01 million bales.

Key Takeaways:

This week, the cotton market demonstrated resilience, with July futures making modest gains despite resistance and downward pressure. The WASDE report provided initial estimates for the 2024/25 crop year, projecting increased global use and ending stocks, indicating potential for growth and stability in the market. 

Sign up for text alerts from NFC! Enter your mobile number to join: