Cotton futures extended their recent gains on Thursday, closing higher across the board. The move came despite fresh data showing a slowdown in export sales.
According to settlement data from ICE Futures U.S., the most-active July 2026 contract settled at 78.13 cents per pound, a gain of 71 points. The May 2026 contract added 59 points to close at 75.7 cents. The December 2026 contract, representing new-crop cotton, rose 64 points to 78.99 cents.
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Export Sales Data Shows a Slowdown
The rally unfolded against a backdrop of mixed fundamental signals. Data from the U.S. Department of Agriculture, released Thursday morning, showed net sales of U.S. cotton for the week ending April 9 totaled 161,101 running bales for the current marketing year. That figure marks the lowest weekly total in six weeks.
But there was a positive year-over-year comparison. The sales volume was nearly 40% higher than the same week last year. Vietnam was the leading buyer for old-crop cotton, purchasing 62,100 running bales. Turkey followed with 49,000 running bales.
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Sales for the next marketing year were lighter, tallied at 26,863 running bales. Shipments for the week came in at 305,029 running bales, a four-week low. Vietnam was again the top destination for shipped cotton.
Broader Market Context
The cotton market did not move in isolation. Broader commodity and financial markets provided a supportive environment. The U.S. Dollar Index, which often moves inversely to dollar-denominated commodities like cotton, was higher. It gained 0.184 points to settle at 98.035.
Crude oil, a key input for synthetic fibers that compete with cotton, posted a strong gain. It was up $1.90 per barrel on the session. Rising energy costs can increase production expenses for synthetic alternatives, potentially making natural cotton more attractive.
Other cotton market indicators showed mixed movements. The Cotlook ‘A’ Index, a benchmark for global physical prices, was 20 points lower at 85.60 cents per pound as of April 15. Certified cotton stocks held in ICE-approved warehouses rose by 2,855 bales on the same day, bringing the total to 162,367 bales.
Cash Market and Pricing Mechanisms
In the daily cash market, The Seam electronic trading platform reported the sale of 10,624 bales on Wednesday at an average price of 72.16 cents per pound. This provides a real-time snapshot of physical trade.
A key pricing mechanism for U.S. growers also moved higher. The USDA’s Adjusted World Price (AWP), used to calculate marketing loan benefits, increased by 287 points on Thursday to 61.61 cents per pound. This rise can influence farmer selling decisions and program participation.
What the Rally Suggests
The continued price strength in the face of softer export data suggests other factors are at play. Market watchers note that fund positioning, technical chart levels, and concerns about future supply can outweigh a single week’s sales figures. The steady gains in the new-crop December contract indicate traders are considering tightness beyond the current season.
This price action could signal underlying bullish sentiment that views the export slowdown as temporary. The year-over-year strength in sales is likely being weighed more heavily than the weekly decline. For textile mills and clothing manufacturers, the sustained rally adds pressure to input costs, which may eventually filter through to consumer prices.
For more information on U.S. agricultural export data, visit the official USDA Foreign Agricultural Service website. Current and historical futures data is available from ICE Futures U.S.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
