Cotton Holds Near Late-July Levels

Cotton futures rose above 78 cents per pound but remains close late July levels following an upbeat weekly sales report. The USDA's weekly export sales report for the week ending October 29th showed an increase of 28% from the previous week, providing some support to the market ahead of Tuesday’s WASDE supply and demand report. However, gains remain capped by the accelerating US harvest, with 63% of the crop harvested by the week ended October 25, above the five-year average of 54%. Peak harvest typically adds seasonal pressure as new supplies enter the market. Competition from Brazil, the world’s leading cotton exporter, is also intensifying. Brazilian exports rose by 25.3% in October compared with a year earlier, highlighting the country's growing importance in global trade. Brazil's Anea forecasts shipments of around 3.4 million tonnes, compared with the USDA's forecast of 2.69 million tonnes for US exports.

Cotton futures held near 78 cents per pound, close to its lowest level in a month as rising harvest supplies weighed on prices. The US harvest continues to advance, with 63% of the crop harvested by the week ended October 25, above the five-year average of 54%. Peak harvest typically adds seasonal pressure as new supplies enter the market. Competition from Brazil, the world’s leading cotton exporter, is also intensifying, with Anea forecasting shipments of around 3.4 million tonnes, compared with the USDA’s US export forecast of 2.69 million tonnes. Meanwhile, progress in US-China trade talks has yet to deliver meaningful tariff relief, prompting Chinese buyers to scale back foreign purchases. In addition, an accelerating negative feedback from downstream textile demand in China, the world's largest producer of textiles, acts as a marginal driver, where the expected seasonal recovery in September and October failed to materialise.

Cotton decreased to 77.60 USd/Lbs, the lowest since October 2026. Over the past 4 weeks, Cotton lost 3.92%, and in the last 12 months, it increased 18.29%.