Cotton Futures Drop 147 Points Amid Weak Export Demand
Cotton prices fell sharply on Friday despite a USDA production cut, driven by disappointing export sales and a stronger dollar.
Cotton futures lost 140 to 147 points on Friday midday trading. The decline occurred despite the USDA lowering US output expectations. Export business data remained weak, pressuring prices further. Crude oil prices dropped by $2.64 per barrel during the same session. The US dollar index rose by $0.028, adding headwinds for commodity buyers.
USDA crop data showed yield down 22 pounds to 776 pounds per acre. Production estimates were cut by 410,000 bales to 13.2 million bales. Old crop US cotton stocks were trimmed by 50,000 bales to 4.15 million bales. New crop carryout fell by 400,000 bales to 3.6 million bales. These adjustments reflect lower production and carryover figures.
Export Sales Data Disappoints
Export sales for the 2026/27 season totaled 73,854 bales in the week of September 3. This figure was nearly half of the volume recorded in the same period last year. New crop sales for 2027/28 amounted to 2,454 bales. Shipments reached 177,774 bales, marking a 36.53% increase over the previous year. The weakness in sales volume weighed heavily on market sentiment.
The NASS Cotton Ginnings report indicated 222,700 bales were ginned by September 1. This figure was 34.2% below levels from the same time last year. ICE certified cotton stocks decreased by 8,789 bales on September 10. The total certified stock level stood at 41,626 bales. These physical inventory changes signal tighter near-term supply conditions.
Price Indices and Contract Levels
The Cotlook A index rose by 110 points on Thursday to 97.20. The Adjusted World Price fell by 441 points to 69.51 cents per pound. Sales on the Seam were reported at 419 bales on September 10. The average price for these sales was 84.65 cents per pound. These indices provide context for broader global cotton pricing trends.
October 2026 cotton futures settled at 83.22, down 142 points. December 2026 contracts closed at 86.75, down 147 points. March 2027 futures traded at 89.20, down 146 points. According to GN markets/commodities, these moves reflect sustained downward pressure. Traders remain cautious amid conflicting supply and demand signals.
