Cotton futures experienced a significant surge on Thursday, with front-month contracts closing at their daily limit gains, propelled by robust export demand and broader market dynamics. The July contract led the charge, closing up the 3-cent limit, while the in-delivery May contract also saw a 3-cent increase. This strong performance extended across the board, with most other cotton contracts registering gains ranging from 102 to 254 points.
nn
Market Performance Driven by Key Indicators
n
The upward trajectory in cotton prices coincided with a weakening US dollar and a dip in crude oil, factors that often influence commodity markets. The US dollar index declined by $0.877, settling at $97.950, making dollar-denominated commodities more attractive to international buyers. Concurrently, crude oil prices were down $1.47, trading at $105.41.
n
Specific contract closes underscored the day’s bullish sentiment:
n
- n
- May 26 Cotton closed at 79.86 cents/lb, up 300 points.
- Jul 26 Cotton closed at 82.2 cents/lb, up 300 points.
- Dec 26 Cotton closed at 82.87 cents/lb, up 241 points.
n
n
n
nn
USDA Export Sales Report Highlights Robust Demand
n
A pivotal driver for Thursday’s gains was the latest Export Sales report from the United States Department of Agriculture (USDA), released on Thursday for the week ending April 23. The report revealed a substantial increase in cotton sales, particularly for the 2025/26 marketing year.
n
Current Marketing Year Sales (2025/26)
n
For the 2025/26 marketing year, cotton sales reached 162,879 running bales (RB), marking a three-week high. This figure represents a significant 56.61% increase compared to sales in the same week last year. Key buyers in this period included:
n
- n
- Vietnam: 55,600 RB
- Pakistan: 33,300 RB
n
n
n
New Crop Sales (2026/27) and Shipments
n
The report also detailed strong interest in future crops, with new crop sales for the 2026/27 marketing year totaling 105,747 RB. This volume stands as the fourth largest total for the marketing year to date. Notable buyers for new crop cotton included:
n
- n
- Turkey: 66,100 RB
- China: 22,000 RB
n
n
n
Furthermore, cotton shipments were robust, tallied at 384,608 RB, which represents a five-week high. Major destinations for these shipments included:
n
- n
- Vietnam: 155,000 RB
- Pakistan: 38,500 RB
n
n
n
These figures collectively paint a picture of sustained and growing international demand for US cotton, providing a strong fundamental underpinning for the recent price appreciation.
nn
Broader Market Context and Other Indicators
n
Beyond the USDA report, other market indicators provided additional context for the cotton market’s performance. Data from The Seam, a leading online cotton trading platform, showed 1,524 bales sold on April 29 at an average price of 76.04 cents per pound. The Cotlook A Index, a benchmark for international cotton prices, remained steady on Wednesday at 89.55 cents.
n
ICE certified cotton stocks, which reflect the amount of cotton available for delivery against futures contracts, were unchanged on April 29, maintaining a level of 165,681 bales. This stability in certified stocks, alongside strong demand, suggests a balanced supply-demand dynamic in the immediate term.
n
The Adjusted World Price (AWP), a crucial reference for US cotton loan rates, also saw an increase, rising another 40 points on Thursday afternoon to 65.66 cents per pound. The upward adjustment in the AWP typically reflects strengthening global prices and can influence farmer decisions regarding marketing their crop.
n
The confluence of strong export sales, a favorable currency environment, and supportive market indicators contributed to the significant upward movement in cotton futures on Thursday. The robust demand, particularly from key Asian markets, suggests that the commodity may continue to find support in the near term, as market participants assess the implications of sustained international interest against existing supply levels.
