Cotton futures are experiencing notable gains, with most contracts up between 110 to 160 points on Monday. This uptick coincides with a stronger US dollar index, currently at $97.830, and a rise in crude oil prices, which increased by $3.63 to $99.04. Managed money has significantly increased its net long position in cotton, adding 12,829 contracts in the week of May 5, bringing the total to 51,184 contracts—the highest level since April 2024.

This bullish sentiment in cotton could indicate a tightening supply situation, as evidenced by the increase in ICE certified cotton stocks to 182,221 bales. The Adjusted World Price also saw a rise, suggesting that external market conditions may be favoring higher cotton prices.

For market professionals, the current momentum in cotton futures presents an opportunity to reassess positions, especially given the recent increases in both managed money long positions and global pricing trends.

Source: nasdaq.com