Cotton Futures at Over 1-Month Low

Cotton futures traded around 77 cents per pound, the lowest since mid-April, as the market extended a technical correction following an intense rally in recent weeks driven by Middle East-related oil volatility and drought concerns. Hopes of a US–Iran deal weighed on crude prices, boosting polyester competitiveness and dampening cotton demand, while better US weather forecasts further pressured prices. Drought-monitoring and agricultural data indicate a sharp improvement in crop conditions, with favorable weather and strong early crop emergence reducing risks across key growing regions. Forecasts show soil moisture from Louisiana to Georgia at supportive levels for crop development.

Cotton decreased to 78.23 USd/Lbs, the lowest since April 2026. Over the past 4 weeks, Cotton lost 0.52%, and in the last 12 months, it increased 19.21%.

Cotton futures eased toward 81 cents per pound, pressured by the US dollar's strength and lower crude oil prices, which enhance polyester competitiveness and weigh on cotton demand. Expectations of rainfall across the US cotton belt also added to the downside pressure. On the supply side, conditions remained mostly favourable for planting and early crop development, with Vaisala Weather analysis indicating supportive soil moisture across the Delta and Southeast cotton belt, aiding crop emergence. Forecasts showed chances of rainfall in Southwest Texas and nearby dry regions, reducing the risk of crop damage. Meanwhile, the latest US weekly crop progress report showed US cotton reached 41% as of May 17, up from 29% a week earlier and slightly above the five-year average of 40%. Lastly, ICE-certified cotton stocks increased sharply to 203,491 bales on May 18, compared to 193,438 bales the previous day, indicating improved deliverable supply availability.