Pressure pushes cotton back on global markets
In the latest developments in the global cotton market, the United States Department of Agriculture (USDA) reported a total export business of 186,108 Round Bales (RB) for the week ending on September 11.
Vietnam emerged as the top buyer, purchasing 77,000 RB of cotton, followed closely by India with 41,800 RB and Turkey with 13,900 RB. The destination for the most shipments was Vietnam, with a significant 55,100 RB. However, shipments saw a 3-week low of 120,493 RB during this period.
The current USDA Adjusted World Price (AWP) for cotton has seen an increase compared to the previous confirmed week, closing at 54.79 cents/lb on Thursday, up 69 points. This upward trend in cotton prices has been a topic of discussion, with many questioning whether the downtrend is truly over.
Despite the uptick, the market remains volatile. Cotton futures closed with losses of 35 to 67 points on the Thursday session, raising questions about how high cotton prices can go and whether cotton can break out from its bearish trend.
It's important to note that the US dollar index was up $0.480 on the day to $97.000, but the article does not provide any new information on this matter. Similarly, crude oil futures were $0.41 lower, but no new information was provided regarding this aspect.
Austin Schroeder, who did not have positions in any of the securities mentioned in the article, was not available for comment on these developments.
The article does not provide specific information on the current prices for Corn, Soybean, or Wheat, focusing primarily on the trends in Cotton. The volatile nature of the cotton market, coupled with the recent price increase in the AWP, suggests a complex and evolving landscape for cotton traders and producers.
