The cotton market remained quiet ahead of Friday’s WASDE report, which delivered a bearish outlook with increased U.S. production and higher ending stocks. Outside factors shaped broader market sentiment, including strong economic data, an averted port strike, and a robust U.S. dollar. Have cotton prices found a floor, or will the continued demand weakness keep prices trending downward? Get QuickTake’s read on the week’s events in five minutes.
Market Movement from 06th Jan 2025 to 11th Jan 2025.
• During the week, the New York futures saw some gains. However, following a bearish WASDE report, all gains were relinquished, resulting in a loss of 65 points week-over-week in the NY March contract.
COTTON: For the 2024/25 U.S. cotton balance sheet, production and ending stocks are increased while exports are reduced. Domestic use and beginning stocks are unchanged. The U.S. all-cotton production is revised upward 159,000 bales to 14.4 million as the national all-cotton yield estimate is raised 44 pounds to 836 pounds per harvested acre, reflecting a larger crop and lower harvested area.
Cotton Continues to Battle Bearish Indicators as 2025 Begins
The New Year brings joy and hope for another successful cotton year. While the beginning of the year saw prices fall below 68 cents, the market still projects a recovery to the 72-cent level. Yet, most fundamentals point to lower prices, at least until the expiry of the March futures contract.