Cotton Futures Climb Off One-Month High

Cotton futures fell below 81 cents per pound after reaching a one-month high of 81.2 cents on July 7, pressured by a stronger US dollar amid renewed Middle East tensions. US President Donald Trump declared the ceasefire with Iran over and revoked the 60-day waiver allowing Tehran to sell crude, while surging oil prices renewed concerns over supply disruptions and boosted the greenback, making US dollar-denominated commodities more expensive. At the same time, higher oil prices raised feedstock costs for petrochemicals such as naphtha, making synthetic fibers less competitive and helping limit cotton’s losses. Meanwhile, adverse weather continued to support prices, with US crops facing record heat despite most planting being completed. India is expected to receive below-average monsoon rainfall after its fifth-driest June since 1901, delaying planting, while Brazil’s cotton exports rose 10.6% from a year earlier.

Cotton increased to 80.49 USd/Lbs, the highest since June 2026. Over the past 4 weeks, Cotton gained 3.57%, and in the last 12 months, it increased 21.99%.

Cotton futures rose to around 78 cents per pound, as adverse weather conditions in key regions supported higher prices. As of July 1, 97% of the U.S. cotton crop had been planted, although a record-breaking heat dome across the eastern U.S. raised concerns over crop conditions. India is likely to see below average monsoon rainfall after recording its fifth driest June since 1901 causing planting lags. Meanwhile, Brazil's cotton exports remained strong, up 10.6% compared to a year earlier. Prices are expected to stay between 75-80 cents in the near-term, according to the U.S. Department of Agriculture's weakly export sales report, despite showing weaker demand for U.S. cotton. The US plans to impose tariffs on countries violating forced labor regulations, although it allows countries to avoid these new tariffs if they increase the use of US-origin inputs. India has waived duty on cotton imports until October, although a decision beyond October is still pending.