Cotton Futures Rally to Close the Week Strong

The cotton futures market has seen a significant turnaround, with prices rising sharply on Friday to close the week strong. The front-month contract gained 116 points to 130 points at the close, while the December contract finished 40 points higher on the week.

Crude oil prices also saw a boost, increasing by $1.15 per barrel, while the US dollar index fell by $0.320.

The Commitment of Traders data revealed that managed money added another 10,591 contracts to their net long position in cotton futures and options during the week ending August 11. This brought their net long position to 78,870 contracts, the largest in over two years.

The data also showed that export sales for the 2025/26 marketing year have accumulated to 11.977 million RB, representing 107% of the USDA’s export projection. Shipments for the same period have totaled 11.198 million RB, rounding out the marketing year.

New crop business has also seen a significant increase, with 4.026 million RB being accumulated, which is 25% above the same period last year.

The Cotlook A Index remained steady on August 13 at 94.95 cents, while ICE-certified cotton stocks decreased by 1,779 bales on Wednesday, bringing the certified stocks level to 75,985 bales.

The Adjusted World Price was raised by 190 points on Thursday to 68.19 cents/lb, reflecting the current market trends.

The cotton futures market is expected to continue its upward trend, driven by factors such as strong demand and favorable weather conditions.

Key Cotton Futures Prices:

• Oct 26 Cotton: closed at 83.6, up 124 points
• Dec 26 Cotton: closed at 84.8, up 130 points
• Mar 27 Cotton: closed at 86.68, up 126 points

It is worth noting that all information and data in this article is solely for informational purposes, and the author does not have any direct or indirect positions in any of the securities mentioned.