Cotton futures experienced mixed movement at midday, fluctuating between a gain of 4 points and a loss of 14 points. This comes as the U.S. dollar index rose to $99.805, while crude oil surged by $10.54 following President Trump’s recent address, which suggested ongoing military strikes and uncertainty in the Strait of Hormuz. The market will close early on Thursday due to Good Friday.
Importantly, export sales data revealed a total of 371,475 RB of cotton sold for the 25/26 marketing year, marking a six-week high and significantly surpassing last year’s figures. However, cotton shipments fell by 10.96% week-over-week, with February exports hitting a 10-year low, despite being 15.51% higher than January.
For market professionals, the notable uptick in cotton sales amidst fluctuating shipment numbers indicates potential volatility ahead. This could influence trading strategies as the market approaches the seasonal strength period for cotton.
Source: nasdaq.com