Friday Morning Quotes Show Cotton Retreat Amid Mixed Commodity Signals

The commodity markets painted a complicated picture as the week drew to a close, with cotton futures leading the decline. The March 26 cotton contract settled at 64.01 cents, representing a 26-point drop, while May 26 cotton finished at 65.37 cents after losing 23 points. July 26 cotton proved slightly more resilient, though still in negative territory at 66.72 cents following an 11-point pullback over the abbreviated trading week.

Government Support and International Benchmarks Provide Context

On Wednesday afternoon, the USDA unveiled the specifics of its Farm Bridge Assistance program, identifying cotton payments at $117.35 per acre—a figure that offers some backstop to producers facing headwinds. Meanwhile, the Cotlook A Index held steady at 74.30 cents on the same day, signaling limited movement in international cotton pricing benchmarks.

Across the broader energy complex, crude oil futures traded at $57.41 per barrel, down 9 cents, while the US dollar index climbed to $98.170, gaining $0.123. The stronger greenback historically pressures dollar-denominated commodities like cotton, creating additional headwinds for the fiber market.

Market Data and Week-Ahead Outlook

The Seam’s online auction recorded 17,479 bales sold on December 31 at an average of 65.40 cents per pound. ICE-certified cotton stocks remained stable at 11,510 bales as of year-end. The Adjusted World Price ticked higher to 50.76 cents per pound on Friday morning quotes, up 74 points from the previous week, while the loan deficiency payment rate sits at 1.24 cents.

Despite the week’s downward pressure on futures contracts, the incremental gains in adjusted world pricing suggest underlying support levels remain intact for the longer-term outlook.

On the date of publication, all information and data in this article is solely for informational purposes.