Cotton Futures Pick Up
2026-04-02 15:26
By
Luisa Carvalho
1 min. read
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.