Cotton futures have surged by 60 to 75 points this morning, continuing a rally that saw contracts close between 11 and 71 points higher on Thursday. This upward momentum comes amidst a strengthening US dollar, which rose to $98.035, and a notable increase in crude oil prices, up $1.90. However, the USDA Export Sales report revealed a total of 161,101 RB of old crop cotton sold in the week ending April 9, marking the lowest sales in six weeks but still reflecting a 39.99% increase year-over-year.

The market dynamics are further complicated by Vietnam’s significant purchases, totaling 62,100 RB, while Turkey followed with 49,000 RB. Despite these sales, shipments fell to a four-week low of 305,029 RB, with Vietnam being the primary destination. This mixed data suggests a cautious outlook for cotton traders, as the market grapples with fluctuating demand and supply metrics.

Market professionals should monitor the evolving export landscape and price movements closely, as these factors will heavily influence cotton valuations in the near term.

Source: nasdaq.com