Cotton Futures Display Choppy Wednesday Quotes Amid Mixed Signals

bridge_anxiety · 2026-01-12T17:36:47+00:00

Cotton contracts showed little movement amid commodity market uncertainty, with recent export sales declining but shipments rising. The Cotlook A Index fell, while ICE certified stocks decreased. Overall, the market hints at gradual stabilization despite short-term weakness.

bridge_anxiety

2026-01-12 17:36:47

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Cotton contracts remained largely directionless during midday trading on Wednesday, hovering within a 10-point range of unchanged levels. This sideways movement reflected broader commodity market uncertainty, with crude oil futures declining 20 cents to settle at $57.75 per barrel, while the US dollar index gained $0.120 to reach $98.075.

Export Activity and Sales Performance

Recent Export Sales data highlighted a softening trend in demand. The week ending December 18 saw 182,680 running bales of cotton sold—a notable pullback from the previous week’s marketing year peak. However, shipment activity painted a more positive picture, with 146,915 running bales recorded during the same period, marking an 8-week high that suggests execution on earlier orders remains solid.

On December 30, the Seam’s online auction recorded 14,459 bales moving at an average price of 60.13 cents per pound, providing additional evidence of price discovery in the physical market.

Index Movements and Stock Levels

The Cotlook A Index retreated 20 points on Tuesday, closing at 74.30 cents per pound. Meanwhile, ICE certified cotton stocks edged lower, declining by 90 bales on December 30 to rest at 11,510 bales total. The Adjusted World Price was updated to 50.02 cents per pound on Monday following the holiday delay, posting a modest 3-point advance from the previous week.

Contract-by-Contract Breakdown

March 2026 cotton futures traded at 64.24, down 8 points from prior levels. May 2026 contracts remained unchanged at 65.64, while July 2026 extended modest gains, up 1 point to 66.86. The forward curve structure suggests market participants are pricing in gradual stabilization over the coming months, despite near-term weakness in the front month.

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