Cotton Futures At Near 2-Week Low

Cotton futures traded around 64 cents per pound, reaching the lowest since February 18 and pulling away from a six-month peak of 66 cents per pound hit on February 25. A stronger US dollar, supported by rising Middle East tensions, has made US cotton costlier for foreign buyers, reducing export demand and pressuring prices. In the meantime, the latest USDA export sales report for the week ended February 19 showed cotton export sales for the current marketing year stood at 253,200 running bales, down from 466,300 running bales in the week ended February 12. Meanwhile, 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. However, surging oil prices helped limit further losses, providing some support to the market.

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.

Cotton increased to 64.56 USd/Lbs, the highest since January 2026. Over the past 4 weeks, Cotton gained 0.3%, and in the last 12 months, it decreased 2.38%.