Cotton Futures Open Strong to Begin the Week

Cotton markets are kicking off with notable upside momentum, as front-month contracts rally between 30 and 42 points. The recent session saw the Dec 25, Mar 26, and May 26 futures deliver solid performance, posting gains spanning 9 to 16 points with the deferred months showing particular strength in the 15 to 16-point range.

Supporting Market Drivers

The broader commodity complex is lending support to softs. Crude oil futures extended their advance to 83 cents per barrel, settling near $58.89, while the US dollar index ticked 0.022 higher to reach $100.135. These cross-market dynamics often influence cotton investor positioning.

Recent auction activity reinforces current market levels. The Seam’s 11/20 online auction cleared 4,368 bales at an average price of 60.77 cents/lb, with the Cotlook A Index holding steady at 74.00 cents. Storage dynamics remain stable as ICE certified cotton stocks maintained equilibrium on Friday at 20,344 bales.

Crop Status and Price Benchmarks

The NASS Crop Progress report released this week provides important context. The US cotton crop stands at 79% complete, trailing the historical 80% average pace for this time of year. This timing differential could factor into forward supply expectations.

The Adjusted World Price came in at 50.80 cents/lb as of Thursday, representing a 103-point pullback from the previous week’s level, now effective through the upcoming Thursday.

Contract Performance Details

December delivery cotton closed at 61.44, up 9 points on the session and currently showing strength. March 26 futures advanced to 64, up 15 points and currently trading 41 points higher. May 26 contracts posted the largest advance at 65.23, climbing 16 points with current gains positioned 37 points to the upside.

The early-week momentum reflects a shift in market perception, though traders remain attentive to the lagging harvest progress and evolving global price benchmarks.