Cotton futures experienced a significant decline on Friday, with contracts dropping between 151 to 333 points. The July contract fell 412 points this week, while December decreased by 355 points. This downturn coincided with a stronger US dollar, which rose $0.467 to $99.195, and an increase in crude oil prices, which gained $4.49 to reach $105.66.

The market’s reaction to recent trade discussions between President Trump and China’s President Xi was tepid, despite optimistic comments about potential benefits for US farmers. Managed money increased their net long positions in cotton futures by 8,386 contracts, bringing the total to 59,570 contracts. However, USDA export data indicates that US cotton exports are lagging behind forecasts, with shipments at only 71% of the USDA’s projections.

Market participants should closely monitor these developments, particularly the sluggish export pace, as it could impact cotton prices and overall market sentiment in the coming weeks.

Source: nasdaq.com