Cotton Farms seeing Progression on Tuesday
The cotton market is showing signs of movement as the US harvest season begins, with 50% of bolls opening and the harvest listed at 9%, according to the latest data.
On September 15, ICE cotton stocks remained steady, with certified stocks level at 15,474 bales. This comes as the market questions whether cotton can break out from its bearish trend.
Prices have been on the rise, with Cotton trading at 69.47 on March 26, up 72 points. The trend continued, with Cotton at 65.76 on October 25, up 34 points, and at 67.59 on December 25, up 75 points. The Cotlook A Index also saw an increase, up 5 points at 78.10 cents on September 15.
However, the USDA's Adjusted World Price (AWP) took a dip, down 21 points on Thursday at 54.10 cents/lb. Despite the rise in prices, the US cotton crop condition ratings have decreased 2% to 52%, with ratings in Texas and Georgia decreasing by 4 points each.
Cotton futures are trading 34 to 75 points higher across the nearbys at midday on Tuesday. The downtrend in Cotton prices may not be over, but the question remains: how high can prices go, given their current upward trend?
The market is also seeing fluctuations in other agricultural commodities, with the article discussing the current trends and potential future movements in Corn, Soybean, Wheat, and Cotton markets.
As of midday on Tuesday, Austin Schroeder did not hold any positions in the securities mentioned in the article. The search for the responsible parties behind the uprisings of Baumwollzukunft on September 16, 2021, did not yield direct results.
The US dollar index is down $0.635 to $96.265, and crude oil futures are $1.26 higher. The article does not provide specific information about the USDA's Adjusted World Price (AWP) or the Cotlook A Index, crop condition ratings, or the Brugler500 index.
In conclusion, the cotton market is showing signs of recovery, with prices on the rise and the harvest season underway. However, the bearish trend may not be completely over, and the market will continue to watch for further developments.
