Demand Still Not Painting a Pretty Picture for Cotton
After a full week of lower prices, the market renewed its teasing with four consecutive days of higher moves. That appeared positive until one realized that the weekly March settlement was only 65.63 – up a few meager 10 or so points on the week.
Market Movement from 03rd Feb 2025 to 08th Feb 2025.
• NY Futures did not experienced significant changes during this week, but during the week NY march Future touched contract low of 65.01 cents per lbs. The technical outlook remains weak. The market is awaiting the WASDE report next week, which could influence a trend reversal. NY March future closed with a weekly loss of 25 points.
Tariffs caused volatility in the markets this week. As the market responds to these uncertainties and looks toward next week’s updated supply and demand report, can cotton prices see some stabilization? Get QuickTake’s read on the week’s events in five minutes.
• The NY Futures showed little movement throughout the month, with the March contract trading within a narrow range of 68.68 to 65.88 cents per lbs. On the last day of the month, it broke the psychological support level of 66 cents, closing just below it at 65.88. NY May Future also followed March and made a distance of carry by nearly one cent.
Cotton prices fell through their yearlong major price support level, establishing a life-of-contract low and destroying the heretofore impenetrable 66-67 long-term support. The writing had been on the wall for some time, as prices had battered the 66-67 cent longtime support level as many as four times before the support gave way to lower prices.