Cotton futures staged a comeback on Tuesday, with most contracts posting gains ranging from 38 to 73 points. This upward movement suggests a renewed bullish sentiment in the market, pushing back against recent downward pressures.
Market Movements and Influences
The gains in cotton futures occurred against a backdrop of a strengthening US dollar, which was up $0.023 at $99.170. Simultaneously, crude oil prices saw a notable increase, climbing $1.23 to $93.39. These macroeconomic indicators can influence commodity markets, though the direct impact on cotton’s performance on Tuesday appears to have been outweighed by other factors.
Crop Progress Report Details
The latest weekly NASS Crop Progress report, released as of May 31st, indicated that 66% of the US cotton crop had been planted. This figure is 1% below the normal pace for this time of year. However, the report also noted that 7% of the crop was squared, which matches the average pace. While planting is slightly behind schedule, the development stage of the crop is in line with historical averages.
Trading Activity and Price Indicators
Trading activity on The Seam on Monday saw sales of 882 bales at an average price of 75.79 cents per pound. The Cotlook A Index, a key benchmark for international cotton prices, also moved higher, increasing by 60 points on June 1st to reach 86.25 cents. This indicates a firmer tone in physical cotton markets as well.
ICE certified cotton stocks saw an increase of 4,998 bales on June 1st, bringing the total certified stock level to 242,911 bales. Meanwhile, the Adjusted World Price experienced a further decline, down 519 points last week to 63.49 cents per pound. This divergence between physical market indicators and the Adjusted World Price could be a point of focus for market participants.
Specific Contract Performance
Looking at specific futures contracts, the July ’26 Cotton contract closed at 77.04, marking a gain of 40 points. The December ’26 Cotton contract finished at 80.54, up 38 points. Further out, the March ’27 Cotton contract settled at 81.72, also gaining 40 points. These gains across near-term and deferred contracts suggest broad-based buying interest.
The recent price action indicates that cotton bulls are actively defending their positions and seeking to drive prices higher. While the slightly delayed planting season presents a potential headwind, the market appears to be focusing on other supportive factors, including the firmer physical market and the overall upward momentum seen in Tuesday’s trading session.
