Cotton Eases From Two-Year Peak

2026-09-03 11:46 By Larissa Caser 1 min. read

Cotton futures fell below $0.87 per pound, easing from a more than two-year high as traders took profits following the recent rally driven by concerns over tighter supply.

The latest USDA crop progress report showed 39% of US cotton crops rated good or excellent, improving from 37% the previous week, easing some supply concerns.

Additionally, export sales declined for the second week.

In Brazil, intense heat and severe drought accelerated harvesting, with 88.7% of the crop harvested.

However, weather risks remain significant.

The El Niño phenomenon is expected to persist through February 2027, potentially affecting crops across key producing regions.

In India, below-average monsoon rainfall remains a concern after August precipitation came in 16% below normal, particularly given that nearly half of the country’s farmland lacks irrigation.

Meanwhile, heavy rainfall in West Texas linked to Cyclone Eduardo is threatening yields, adding to uncertainty over the global cotton supply outlook.



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