Cotton Futures at 8-Month Lows

Cotton futures traded above 79 cents per pound, holding close to the highest since early June, as weather concerns in key US growing regions weighed on the supply outlook. While beneficial rainfall was reported along the Texas coast, dry conditions are likely to persist in West Texas. In the meantime, India is expected to receive below-average rainfall over the next two weeks, especially in central and northern regions that could delay planting of summer-sown crops, including cotton. Meanwhile, the June US agricultural supply and demand report pointed to a tighter global cotton balance in 2026/27, with lower beginning and ending stocks and slightly higher consumption. Easing geopolitical tensions also provided support, as lower crude oil prices may reduce costs for textile producers.

Cotton futures traded around 76 cents per pound, holding close to the lowest since early April, mainly pressured by falling oil prices. Renewed hopes of a US–Iran deal weighed on crude prices, boosting polyester appeal and potentially reducing cotton demand. Meanwhile, data from the June US agricultural supply and demand report pointed to a tighter global cotton balance in 2026/27, with lower beginning and ending stocks and slightly higher consumption. World production is forecast to remain stable at 116.04 million bales, while demand rises, led by China. The US cotton balance sheet showed lower beginning and ending stocks, reflecting a 200,000-bale reduction carried over from the previous year. For 2025/26, higher global exports are expected to reduce ending stocks, while world production and consumption remain largely unchanged. Global exports were raised by more than 1%, led by Brazil, the United States, Kazakhstan and Turkey.

Cotton decreased to 75.41 USd/Lbs, the lowest since April 2026. Over the past 4 weeks, Cotton lost 14.01%, and in the last 12 months, it increased 15.44%.