Cotton futures surged on Tuesday, with gains ranging from 66 to 114 points across various contracts. This uptick comes amid a stronger US dollar, which rose by 0.278 to $98.185, and an increase in crude oil prices, which climbed $2.19 to $91.80. The latest NASS Crop Progress report indicates that 11% of the US cotton crop has been planted as of April 19, slightly ahead of the five-year average of 10%, signaling positive momentum for the sector.

The robust planting figures, particularly in major cotton-producing states, suggest a favorable supply outlook, which could bolster cotton prices further. Notably, the Cotlook A Index also increased by 175 points to 89.10 cents, reflecting heightened global demand. Meanwhile, ICE certified cotton stocks remained steady, indicating stable market conditions.

Market professionals should monitor these developments closely, as the combination of favorable planting progress and rising prices may signal a bullish trend for cotton futures in the near term.

Source: nasdaq.com