Cotton Under Pressure: Why Prices Just Hit Their Lowest Point Since Spring
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This is your Cotton podcast.
Welcome back to the Daily Cotton Price Tracker, I am Vanessa Clark, and today we are talking about what is happening right now in the global cotton market, including the latest cotton price and what it means for you.
Let us start with the current trading price for cotton. According to Trading Economics, the global benchmark cotton price is trading around seventy five point four one United States cents per pound, which is the lowest level since April of this year. Over the past four weeks, cotton prices have dropped more than fourteen percent, even though they are still up about fifteen percent compared to this time last year. In other words, we are seeing a short term downtrend inside a longer term recovery.
Barchart reports that nearby United States cotton futures are also under pressure, with the July twenty twenty six contract recently trading a little above seventy six cents per pound and the December twenty twenty six contract just under eighty cents. That spread tells us the market still expects slightly stronger prices later in the year, but buyers are clearly in control right now.
On the crop side, AgNet West reports that the United States Department of Agriculture says about eighty six percent of intended United States cotton acreage has been planted, just a bit behind the five year average, with Texas still lagging because of rain delays. Nineteen percent of the national crop has reached the squaring stage, and about two percent is already setting bolls. That means supply prospects look reasonably solid, which is one reason prices have been easing.
So what can you do with this information? If you are a cotton grower, these lower prices may pressure margins, so it might be a good time to review your marketing plan, check your breakeven costs, and talk with your merchandiser about scaling in sales if prices bounce. If you are a textile buyer or spinner, this dip in cotton prices could be an opportunity to lock in contracts or hedge some of your needs while the market is soft.
That is it for today on the Daily Cotton Price Tracker with Vanessa Clark. Thanks for listening, be sure to subscribe, share this with a friend who watches cotton prices, and tune in next time for your next quick update on the cotton market.
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