## US Cotton Futures Begin Week with Upward Momentum

The US cotton market opened the week on a positive note, with near-term contracts gaining ground after a robust performance in the prior trading session. March contracts led the charge, advancing 25 basis points at the close Friday and maintaining an additional 12-point edge into Monday trading. May and July futures followed suit, posting respective increases of 15 and 18 points as buyers continued to show interest across the forward curve.

**Market Drivers and Cross-Commodity Influence**

Crude oil's retreat to $56.90 per barrel—a decline of $1.45—appears to have created headwinds for energy-linked commodities. Meanwhile, the US dollar strengthened modestly, climbing $0.054 to $97.735, a factor that typically pressures commodity prices priced in the greenback. Despite this headwind, cotton managed to hold its ground, signaling underlying demand resilience.

**Price Action and Contract Details**

The most actively traded March contract settled at 64.49 cents per pound on Friday, with May closing at 65.78 and July at 66.95. These levels reflect the market's gradual price premium for more distant delivery months—a pattern typical in well-supplied commodity markets. The week prior saw March surge 74 points, establishing momentum that traders carried into the new week's opening.

**Global Supply and Inventory Snapshot**

International cotton benchmarks provided supporting evidence for price stability. The Cotlook A Index climbed 50 points to 74.00 cents on December 24, signaling broader strength in the global market. Domestically, ICE certified stocks remained unchanged at 11,600 bales as of Wednesday, while the Adjusted World Price held steady at 49.99 cents per pound following last week's holiday closure.

**Cash Market and Auction Results**

The December 24 online auction from The Seam reflected steady demand, with 6,914 bales clearing at an average of 61.96 cents per pound—a figure slightly below spot index levels but indicative of balanced buyer-seller participation. This data reinforces the view that US cotton prices remain competitive on the global stage despite recent strength.