Cotton futures surged on Friday, closing up 41 to 177 points, with July contracts gaining 54 points for the week. This rise coincided with a decline in the US dollar index, which fell by $0.179 to $97.765, while crude oil prices dipped slightly to $94.68. Managed money increased their net long position in cotton futures and options by 12,829 contracts, bringing the total to 51,184 contracts—the highest level since April 2024.

The USDA’s Export Sales report indicates cotton sale commitments at 10.82 million running bales (RB), slightly below last year’s figures but still representing 96% of the USDA’s full-year export estimate. Actual shipments are at 7.72 million RB, aligning closely with historical averages. The Cotlook A Index dropped to 93.80 cents, while the Adjusted World Price saw a notable increase to 69.59 cents per pound.

For market professionals, the growing net long position in cotton futures suggests increasing bullish sentiment among traders, which could impact future pricing and trading strategies in the commodity sector.

Source: nasdaq.com