Cotton Hits 28-month High

Cotton futures traded above 88 cents per pound, reaching its highest level in over two years, as crop conditions deteriorate. The latest USDA crop progress report showed conditions worsening to 38% rated good-to-excellent, down from 40% last week and 46% two weeks prior. Deteriorating weather across key producing regions, marked by drought and rising temperatures, raises the risk of lower yields and tighter global supplies, supporting prices. In Brazil, exports surged 19% in July. Meanwhile, El Niño conditions are projected to strengthen through September, keeping temperatures elevated and threatening yields. In India, plantings have largely recovered following normal July rains that offset a dry June, though August and September precipitation remains critical for final output. Still, the rally has left cotton vulnerable to profit-taking as traders lock in gains.

Cotton increased to 89.30 USd/Lbs, the highest since April 2024. Over the past 4 weeks, Cotton gained 10.97%, and in the last 12 months, it increased 35.58%.

Cotton increased to 86.77 USd/Lbs, the highest since May 2026. Over the past 4 weeks, Cotton gained 9.81%, and in the last 12 months, it increased 30.34%.