Cotton Prices Ease Slightly
Cotton futures have steadied around 65 cents per pound, experiencing a slight decline from the highs observed earlier in September. Market participants are now focused on forthcoming economic data to better understand supply and demand trends. The United States Department of Agriculture (USDA) has delayed the release of its weekly export sales report indefinitely due to the ongoing federal government shutdown, which has now entered its second week. This shutdown also threatens to delay the release of the October World Agricultural Supply and Demand Estimates (WASDE) report. Prior to the shutdown, the USDA's latest crop progress report indicated that the US cotton harvest was 16% complete as of September 28, aligning with the five-year average. The market outlook remains positive, bolstered by expectations of increased crop estimates in countries such as China, India, Brazil, and the US. However, a decrease in oil prices has enhanced the appeal of synthetic fiber alternatives, which could potentially dampen cotton demand and pressure prices downward.
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