Commodity Markets Post Notable Wednesday Session With Cotton Leading the Rally

Wednesday trading brought positive momentum across multiple commodity futures markets, with cotton futures demonstrating particularly strong performance. Cotton contracts climbed between 35 to 99 points throughout the session, while crude oil futures gained 13 cents per barrel to reach $58.08. The US dollar index declined by $0.064 to close at $99.525.

Cotton Futures Show Strength as Specs Continue Building Positions

The most striking development emerged from Commitment of Traders data, revealing that speculative funds have expanded their net short position in cotton futures and options. As of October 14, spec funds held 81,343 contracts—a fresh record high—after adding 5,017 fresh contracts to their portfolio. This growing short positioning reflects ongoing market positioning amid volatile pricing dynamics.

Physical Market and Pricing Signals

Recent auction activity provides additional insight into cotton market mechanics. The November 25 online auction through The Seam cleared 6,457 bales at an average price of 59.97 cents per pound. Meanwhile, the Cotlook A Index posted a 25-point advance on Monday to 74.35 cents, signaling improved sentiment in the international benchmark pricing.

Storage data remained stable, with ICE certified cotton stocks holding steady at 20,344 bales on November 25. The Adjusted World Price was recently set at 50.80 cents per pound—marking a 103-point decline from the preceding week and remaining in effect through Thursday.

Contract Valuations Across Delivery Months

The forward curve reflected the Wednesday gains across near and deferred contracts. December 25 Cotton settled at 62.43, up 99 points on the session. March 26 Cotton climbed 38 points to 64.61, while May 26 Cotton gained 35 points to end at 65.78, showing consistent strength across the curve.

With markets set to close Thursday, traders are monitoring both physical cotton flows and the positioning adjustments among large speculators as the market continues to process supply-demand dynamics.