Cotton Rally Continues Into Tuesday Morning Trading

Cotton Market Update: Prices Continue to Climb

Cotton futures saw another increase on Tuesday morning, rising between 40 and 64 points. This follows Monday’s gains, where nearby contracts advanced by 55 to 64 points, rebounding after a slower holiday trading period. Meanwhile, crude oil prices moved up by $1.08 per barrel to reach $58.34, and the US dollar index slipped by $0.113 to 98.045.

USDA Export Sales and Shipments

According to the USDA’s latest Export Sales report, 133,996 running bales of cotton were sold during the week ending December 25. Shipments for the same period totaled 140,723 running bales, marking a decrease compared to the previous week.

Highlights from Barchart

Additional Market Insights

Recent Commitment of Traders figures indicate that managed money reduced their net short positions in cotton futures and options by 1,368 contracts as of last Tuesday, bringing the total to 49,078 contracts.

On January 2, The Seam’s online auction reported sales of 4,796 bales at an average price of 57.81 cents per pound. The Cotlook A Index remained unchanged at 74.30 cents on Friday. ICE certified cotton stocks held steady at 11,510 bales as of January 2. The Adjusted World Price increased to 50.76 cents per pound last week, up by 74 points from the previous week, and the Loan Deficiency Payment (LDP) rate is now set at 1.24 cents.

Recent Cotton Futures Settlements

• March 2026 Cotton: Settled at 64.65, up 64 points, with current gains of 64 points
• May 2026 Cotton: Closed at 65.99, up 62 points, currently up 62 points
• July 2026 Cotton: Ended at 67.31, up 59 points, with current gains of 53 points