## Cotton Surges Mid-Week as Commodity Markets Show Strength

Cotton futures are displaying impressive momentum on Wednesday, with prices climbing 39 to 99 points across different contract months. The broader commodity complex is also showing resilience, as crude oil futures advance 13 cents per barrel to $58.08, while the US dollar index dips 0.064 points to $99.525. Trading will resume Friday after Thursday's market closure.

### Positioning Data Reveals Growing Short Exposure

Recent Commitment of Traders reports indicate that speculative funds have expanded their short positions significantly in cotton futures and options. As of October 14, spec traders added 5,017 contracts to their net short holdings, bringing the total to 81,343 contracts—marking a record level. This accumulation of short positions suggests traders are betting on further price weakness despite Wednesday's gains.

### Physical Market Activity and Global Benchmarks

The November 25 online auction from The Seam processed 6,457 bales at an average of 59.97 cents per pound, providing insight into spot market dynamics. Meanwhile, the Cotlook A Index moved up 25 points to 74.35 cents on Monday. ICE certified cotton inventories remained stable at 20,344 bales as of November 25.

The Adjusted World Price for cotton was set at 50.80 cents per pound last week, representing a 103-point decline from the previous week's level. This benchmark remains in effect through Thursday's market close.

### Contract Performance Across the Board

The December 2025 cotton contract is trading at 62.43, up 99 points on the day. March 2026 cotton futures show gains of 38 points to 64.61, while May 2026 contracts advanced 35 points to 65.78. This across-the-board strength in forward contracts suggests near-term support despite elevated short positioning in the spec funds' portfolio.