The overall prices for cotton moved higher for the week ended June 30 compared to levels during the previous week. We are discussing number two cotton traded on the ICE (Intercontinental Exchange) that meets certain minimum standards of length and grades.
For the week ended June 30, the average weekly prices for number two cotton contracts moved higher by as much as 3% from 71.6 cents in the week ended June 23 to an average of 73.8 cents. Cotton futures are currently trading at levels close to those observed towards the end of 2016.
Current prices are much higher compared to levels a year ago. To put it in perspective, the prices for the week ending June 30 were trading about 15% higher compared to the corresponding week in 2016.
In the above chart, we see that the cotton futures for most of the maturities shifted higher than levels in the previous week. FMC (FMC) and DuPont (DD) sell protection products for crops while companies (BAL) such as Syngenta (SYT) and Monsanto (MON) sell cotton seeds and related crop protection products as well.
To stay up to date on the agribusiness sector, be sure to visit Market Realist’s Basic Materials page.