Cotton Rises to 6-Month High

2026-02-25 16:21 By Felipe Alarcon 1 min. read

Cotton futures rose past 66 cents per pound, the highest since August 2025, fueled by a sharp surge in demand and tightening supply projections.

Recent USDA data revealed a marketing-year high for export sales, with 466,300 bales sold in a single week, a 70% increase over the prior month, led by heavy buying from Vietnam and Bangladesh.

This demand spike coincides with the USDA’s Agricultural Outlook Forum projecting a 3% decline in global 2026/27 production to 116 million bales.

Despite this bullish momentum, the market faces headwinds from a proposed 15% global import tariff and rising competition for US acreage, as soybeans are expected to expand by 6% at cotton’s expense.

Meanwhile, Brazil’s Anea reports that while the 2024/25 harvest hit a record 4.26 million tons, the 2025/26 crop is forecast to drop 9% due to shrinking margins.

As China ramps up synthetic fiber production, the market remains caught between shrinking acreage and shifting global demand.



News Stream
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