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Cotton Experiences Decline on Midweek Trading Day

Prices for cotton futures dropped by 70 to 106 points on Wednesday, closing at the bell. Crude oil prices decreased by 66 cents per barrel, while the US dollar index retreated to $98.755, losing $0.404. Over the upcoming week, forecasters predict precipitation in Texas and along the East Coast.

,   and  ASMedia
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Futures for cotton decreased by 70 to 106 points yesterday, closing at the closing bell. Crude oil...
Futures for cotton decreased by 70 to 106 points yesterday, closing at the closing bell. Crude oil prices dropped by 66 cents per barrel, while the US dollar index retreated by 0.404 to $98.755. The upcoming week is forecasting precipitation across most of Texas and the East Coast.

Cotton Experiences Decline on Midweek Trading Day

**Cotton Futures: What's Happening Now? Let's Take a Deep Dive into the Market**

Cotton futures are seeing a rollercoaster ride as we dive into June 2025. Here's the lowdown on what's been going down and what's in store.

The cotton market is experiencing a blend of supply and demand fluctuations that are shaping the prices of various futures contracts.

Overall trend: Cotton prices have been holding steady around the 65 cent per pound mark, with minor ups and downs. As of June 6, 2025, cotton soared to a high of 65.59 USD/Lbs, registering a 0.42% increase from the previous day[4].

Recent performance: Over the past month, cotton prices have dipped by 2.67%[4]. For the year, cotton has slipped by 2.69 USD/Lbs or 3.93% since the New Year[4].

Individual Contracts

July 2025 Cotton: The July futures contract has shown a modest uptick, settling at 65.36 cents per pound[5].

October and December 2025 Cotton: Price data for these contracts isn't available. However, the market trend for cotton futures generally follows similar patterns, with prices being influenced by global supply and demand.

Market Analysis

Supply and Demand: The USDA's May report indicates a slight increase in U.S. cotton production and exports for 2025-26. Yet, rising ending stocks are expected to keep price pressure high[1][4].

Global Production: Global cotton production is predicted to increase by nearly 1.5% from 2024-25, fueled by higher beginning stocks[2].

Market Forces: Factors like tariffs and speculative trading positions can significantly affect cotton prices. As of now, speculators are holding a record short position, casting a gloomy short-term outlook[4][5].

Wrapping Up

Cotton futures are currently treading water within a narrow range, influenced by supply and demand dynamics. The market is hesitant due to factors like tariffs and speculative trading positions. Yield, rather than price, is expected to be the deciding factor in cotton's success in 2025[3]. Stay tuned for more updates on this dynamic market!

[1] https://www.usda.gov/oce/cotton/cotton_production.htm[2] https://www.icac.org/sites/default/files/ICAC_Global_Production_Outlook.pdf[3] https://www.businessinsider.com/cotton-farming-production-risk-price-outlook-2021-7[4] https://www.cotlook.com/what-we-do/cotton-news[5] https://www.cottonglobaldepot.com/blog/cotton-price-analysis-overall-outlook/

Weather conditions: Unpredictable weather in key cotton-producing regions could potentially impact the cotton harvest, shifting supply dynamics and consequently, affecting the prices of various cotton futures contracts.

Influence of weather: For instance, prolonged periods of drought or excessive rainfall can halt or delay the growth of cotton crops, negatively affecting the supply and driving up cotton prices in the affected markets.

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