Cotton futures climb on export sales rebound and shipment surge
Futures gained up to 57 points as weekly sales data showed a recovery from last year’s lows, while shipments hit a four-week high.
Cotton futures recorded gains of 8 to 57 points across most contracts at midday on Thursday, driven by fresh export sales data that indicated a recovery from the previous marketing year’s low. The Cotlook A Index rose 160 points to 89.60 cents, while the Adjusted World Price was increased by 3.52 cents to 65.37 cents per pound.
Export Sales data for the week ending July 16 showed that 51,287 running bales of cotton were sold for the 2025/26 marketing year. New crop business reported an additional 16,146 running bales during the same period. Shipments reached 276,313 running bales, marking a four-week high and suggesting improved physical movement of the commodity.
Broader market conditions provided further support for the rally. Crude oil prices increased by $5.71 per barrel, and the US dollar index rose by 0.311 points. While the stronger dollar typically pressures commodities, the robust demand signals in the cotton sector appeared to outweigh currency headwinds during the session.
Inventory data from the Intercontinental Exchange (ICE) showed that certified cotton stocks remained unchanged on July 22, with the total level held at 94,235 bales. The lack of change in certified stocks suggests a stable supply environment in the short term, even as export activity accelerates.
Weather forecasts from the National Oceanic and Atmospheric Administration (NOAA) indicate very limited precipitation across Texas and the southeast for the coming week. The 7-day Quantitative Precipitation Forecast (QPF) highlights potential dryness in key growing regions, which may continue to underpin price sentiment despite the stable inventory levels.
The Adjusted World Price is scheduled to be updated later in the day, which may refine the current pricing structure. Meanwhile, other agricultural commodities faced different pressures, with Brazil coffee harvest concerns and slumping cocoa prices due to weak demand and abundant supplies, though these factors remained distinct from the cotton market’s upward trajectory.
