Cotton Hovers Around 2-Month Lows

Cotton futures traded around 76 cents per pound, holding close to the lowest since early April, mainly pressured by falling oil prices. Renewed hopes of a US–Iran deal weighed on crude prices, boosting polyester appeal and potentially reducing cotton demand. Meanwhile, data from the June US agricultural supply and demand report pointed to a tighter global cotton balance in 2026/27, with lower beginning and ending stocks and slightly higher consumption. World production is forecast to remain stable at 116.04 million bales, while demand rises, led by China. The US cotton balance sheet showed lower beginning and ending stocks, reflecting a 200,000-bale reduction carried over from the previous year. For 2025/26, higher global exports are expected to reduce ending stocks, while world production and consumption remain largely unchanged. Global exports were raised by more than 1%, led by Brazil, the United States, Kazakhstan and Turkey.

Cotton decreased to 75.41 USd/Lbs, the lowest since April 2026. Over the past 4 weeks, Cotton lost 14.01%, and in the last 12 months, it increased 15.44%.

Cotton futures traded around 78 cents per pound, near the lowest in a week, as the dollar held firm and improved weather conditions boosted crop prospects. Local reports indicated that recent rainfall across parts of the US Cotton Belt improved soil moisture and crop prospects, reinforcing expectations of a stronger supply outlook. Favourable conditions were noted across northern West Texas, the Coastal Bend, the Delta and the Southeast. Overall, US cotton supply fundamentals remain relatively comfortable, despite some demand support from India. The latest US Weekly Crop Progress report showed cotton planting had reached 66%, up from 53% a week earlier and 64% a year ago, broadly in line with the five-year average of 67%. Meanwhile, New Delhi has suspended cotton import duties for five months to help textile mills secure cheaper raw materials and support garment exports. The move is expected to boost imports from Australia, Brazil, the United States and African producers.