Cotton futures experienced volatility on Thursday, closing with a mixed performance as May futures rose 146 points this week. The US dollar strengthened, while crude oil surged by nearly $12 following President Trump’s remarks about ongoing military actions that could impact global oil supply, particularly through the Strait of Hormuz. The market will be closed on Friday for Good Friday, adding to the day’s trading significance.
Importantly, export sales data revealed robust demand for cotton, with total sales reaching 488,746 running bales, marking the highest in six weeks. Vietnam emerged as a key buyer, purchasing 175,500 RB, while new crop sales also showed strength. However, cotton shipments fell by nearly 11% week-over-week, raising questions about future supply dynamics.
The key takeaway for market professionals is the potential impact of geopolitical tensions on commodity prices, particularly crude oil and cotton, as well as the implications of strong export sales on cotton market stability moving forward.
Source: nasdaq.com