Cotton Futures Approach 2-Week Highs

Cotton futures rose above 77 cents per pound, approaching a two-week high, amid ongoing technical rebound, still elevated oil prices, and India’s suspension of its 11% import duty on cotton. The move, which runs until October 30, is aimed at boosting supplies of high-quality fiber for the textile industry and is expected to lift domestic purchases amidst strong global demand for yarns and textile products. Cotton is likely to be sourced from surplus exporters including Australia, Brazil, the United States, and Africa. Additional support came from strong US export sales, with USDA data showing 153,622 running bales in the latest week, up 17% from the previous week and above the four-week average. Meanwhile, the Crop Progress report showed 66% of the US cotton crop had been planted, up from 53% a week earlier and slightly ahead of 64% at the same time last year, indicating that crop development remains largely on track.

Cotton futures traded around 77 cents per pound, near the lowest since mid-April, pressured by falling oil prices along with signs of ample supply and a stronger production outlook. Latest data showed ICE certified stocks increased by 104 bales to 225,259, the highest level since July 2017. Meanwhile, weather conditions across the US cotton belt have improved, especially in West Texas, easing drought concerns and improving crop prospects. The USDA reported US cotton planting at 53% complete as of May 24, ahead of last year’s 50% pace and slightly above the five-year average, reinforcing expectations for stable to higher supplies. Separately, US Agriculture Secretary announced the “Great American Cotton Plan” aimed at strengthening the US cotton sector and support producers. Elsewhere, consulting firm StoneX kept its Brazil's 2025/26 cotton production estimate unchanged at 3.858 million tons, while raising its export forecast by 6.5% to a record of 3.3 million tons.

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.