Cotton futures are trading down by 98 to 109 points on Tuesday. At midday, cotton futures on October 26 reached 81.29 cents per pound, indicating a decrease of 109 points. Additionally, cotton futures for December 26 reached 85.08 cents and for March 27 reached 87.57 cents, both experiencing significant declines.
Impact of Oil and Dollar Prices on the Market
Meanwhile, crude oil prices have increased by $1.59 per barrel. Also, the U.S. Dollar Index rose by 0.609 points to 107.43. The increase in these two factors could affect demand and cotton prices.
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Analysis of Trade Data
Trade commitment data shows that professional investors have reduced their net long positions by 7,806 contracts, bringing the total to 100,170 contracts. This reduction in long positions indicates caution among investors, which may have been caused by recent market volatility.
The Cotlook A Index increased by 100 points to 98.20 on Friday. Additionally, ICE-approved cotton inventory has decreased by 3,164 bales, reaching 38,462 bales as of September 11. The globally adjusted cotton price also fell by 441 points compared to last week, reaching 69.51 cents per pound.
Looking at recent developments, it appears that the cotton futures market is affected by external factors and changes in economic conditions. Investors should closely monitor developments and respond to market reactions.
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