Cotton Futures at Over 2-Month Lows

Cotton decreased to 61.55 USd/Lbs, the lowest since November 2025. Over the past 4 weeks, Cotton lost 4.97%, and in the last 12 months, it decreased 6.25%.

Cotton futures fell further to trade below 63 cents per pound, hovering near the lowest since late November 2025, weighed down by a firming US dollar alongside falling oil prices. Meanwhile, the latest USDA's export sales report for the week ended January 22 showed that cotton export sales for the current marketing year at 203,700 running bales, following the sharp rebound seen a week earlier to a record of 412,457 bales, underscoring ongoing demand concerns. Separately, ICE data indicated that deliverable No. 2 cotton inventories stood at 8,600 bales on January 28, slightly higher than the prior day. Meanwhile, the USDA’s January 2026 production report cut output forecasts versus both the previous estimate and the 2024 crop, with significant declines in the southeastern United States.

Cotton futures fell toward 63 cents per pound, nearing the lowest since November last year, amid easing geopolitical tensions while traders evaluated the demand and supply dynamics. Losses were partly cushioned by a weaker dollar. A delayed USDA weekly export sales report showed 412,457 RB of cotton sold in the week ending on January 15, a marketing year high, representing a 21% increase from the previous week and a notable rise compared with the prior 4-week average. On the supply side, an approaching winter storm in the US raised fears of output disruptions. Meanwhile, the Cotton Association of India (CAI) recently raised the country's cotton crop production estimate for October-September 2025-26 by 2.5% to 317 lakh bales, following reports of higher production in Maharashtra, Telangana and Karnataka. The USDA’s January report highlighted firmer demand alongside tighter supply conditions for the 2025/26 season.