Cotton futures experienced significant declines on Wednesday, with losses ranging from 33 to 121 points across various contracts. This downturn coincided with a stronger US dollar, which rose $0.054 to $99.155, and a notable drop in crude oil prices, which fell by $4.48 to $89.41. The latest NASS Crop Progress data indicated that 53% of the US cotton crop was planted as of May 24, aligning with the five-year average, although several key states reported planting delays.

The pressure on cotton prices is further illustrated by the Cotlook A Index, which decreased by 350 points to 87.35 cents, and the Adjusted World Price, which fell 319 points to 68.68 cents per pound. With ICE certified cotton stocks increasing to 225,155 bales, the market faces potential oversupply concerns that could continue to weigh on prices.

Market professionals should closely monitor these trends, as the combination of planting progress and price pressures may signal ongoing volatility in the cotton market.

Source: nasdaq.com