Cotton futures Rise to 1-Month Highs

2026-02-20 10:14 By Luisa Carvalho 1 min. read

Cotton futures traded around 64.4 cents per pound, the highest since January 19, as traders closely monitored the global supply and demand outlook for the natural fiber.

According to the USDA’s Agricultural Outlook Forum, 2026/27 global cotton production is projected to fall 3% to 116 million bales, while consumption rises to 120.1 million bales, a combination that is expected to tighten stocks and support higher prices.

In the meantime, the USDA in its February WASDE report raised its forecast for 2025/26 global cotton production by 425,000 bales from January to 119.86 million bales, alongside a 200,000-bale reduction in consumption.

Meanwhile, Brazil's National Association of Cotton Exporters (Anea) reported at its first bimonthly meeting of 2026 that the 2024/2025 harvest reached 4.26 million tons, the largest volume in recent years.

For the newly planted 2025/2026 crop, it projects production of 3.873 million tons, an approximate 9% reduction compared to the previous record cycle.



News Stream
Cotton Futures Pick Up
Cotton futures rose above 71 cents per pound, hitting the highest since October 2024, largely driven by firmer oil prices amid renewed concerns over a prolonged Iran war. US President Trump, in a televised address, provided few details on resolving the conflict and pledged further military action against Iran, stoking fears of lasting oil supply disruptions. Rising crude oil prices make cotton’s substitute, polyester, less affordable, boosting demand for cotton. At the same time, the International Cotton Advisory Committee (ICAC) projects global cotton production to decline 4% to 24.9 million tonnes in 2026-27, while consumption is expected to hold steady at about 25 million tonnes. The projected decline in cotton output reflects lower prices, softening demand, and cutbacks in plantings among leading producers, including Brazil and Australia, with US farmers reallocating acreage to corn and soybeans.
2026-04-02
Cotton Futures Ease
Cotton futures fell slightly to below 70 cents per pound, amid profit booking after a recent rally and tracking weakness in the grain market. Falling crude oil prices, driven by hopes for a swift resolution to the Iran war, improved the affordability of polyester, reducing demand for cotton. Meanwhile, the USDA’s prospective planting report, released on March 31, indicated US farmers are expected to plant more cotton in 2026, with acreage projected to rise 4% to 9.64 million acres from 9.28 million acres last year. Investors were monitoring US weather, particularly Texas rainfall, and overall planting progress while awaiting further clarity on the crop outlook. In the meantime, StoneX kept its 2025/26 Brazilian cotton production forecast at 3.74 million tons, but raised expected exports for 2026 to 3.1 million tons.
2026-04-01
Cotton Hits 46-week High
Cotton increased to 70.42 USd/Lbs, the highest since May 2025. Over the past 4 weeks, Cotton gained 8.75%, and in the last 12 months, it increased 5.13%.
2026-03-30