Cotton Losing Ground as Friday's Session Unfolds

Cotton contracts are slipping lower as the trading session progresses on Friday, with the nearby months trading 2 to 5 points beneath prior levels. This weakness mirrors broader commodity pressure, though crude oil futures managed to gain ground, climbing 5 cents to settle at $57.64 per barrel. The US dollar index retreated by $0.21, now sitting at $98.365, which typically provides headwinds for commodity-priced goods.

Market Data Points and Price Action

The most recent pricing snapshot shows cotton futures retreating across the board. March 26 Cotton contracts are trading at 63.92, down 5 points from the previous session. May 26 Cotton has declined 2 points to 65.03, while July 26 Cotton is off 3 points at 66.04. This consistent slipping across contract months suggests underlying selling pressure throughout the forward curve.

From Thursday’s online auction through The Seam platform, 13,615 bales traded at an average price of 60.93 cents per pound, providing a snapshot of cash market activity. The Cotlook A Index rebounded 25 points on December 11, reaching 74.20 cents, offering some support to sentiment despite futures weakness.

Underlying Supply and Global Pricing Dynamics

ICE certified cotton stocks held steady on December 11 at 13,971 bales, maintaining a relatively stable inventory position. The critical Adjusted World Price indicator was revised lower to 50.39 cents per pound on Thursday, down 89 points from the previous week—a more pronounced decline that underscores the broader downward pricing momentum affecting the global cotton complex.

The combination of slipping futures prices, declining world prices, and steady inventory levels paints a picture of soft demand meeting available supply, pressuring the complex lower as Friday’s session demonstrated.