Cotton Kicks Off the Week on a Positive Note

DegenApeSurfer · 2026-01-04T15:53:35+00:00

Cotton futures show bullish trends with prices rising 10 to 18 points, driven by broader commodity momentum. Strong physical market activity and stable supply support the positive outlook for contracts, particularly in March, May, and July 2026.

DegenApeSurfer

2026-01-04 15:53:35

Abstract generation in progress

Cotton futures are showing some bullish momentum as the trading week begins, with prices climbing 10 to 18 points. The March contract led the charge last week, posting an impressive 74-point rally as Friday’s close saw contracts finishing 25 to 40 points in the green across the board.

Market Backdrop Favors Price Action

The broader commodity landscape is providing some tailwinds. Crude oil futures retreated to $56.90 per barrel, down $1.45, while the US dollar index inched higher at $97.735 (up $0.054). These macro shifts often flow through to agricultural commodities like cotton, creating the conditions we’re seeing at 11:11 quotes on market open.

Physical Market Signals

The Seam’s 12/24 online auction reflected solid activity with 6,914 bales moving at an average price of 61.96 cents/lb. Meanwhile, the Cotlook A Index jumped 50 points to hit 74.00 cents on December 24, signaling strength in spot market valuations.

Supply Picture Remains Stable

ICE certified cotton stocks held steady at Wednesday’s close with 11,600 bales on the books. The Adjusted World Price remained anchored at 49.99 cents/lb after missing last week’s update due to the holiday closure.

Contract Performance Breakdown

March 2026 Cotton: Closed Friday at 64.49, up 25 points, currently up 12 points
May 2026 Cotton: Closed Friday at 65.78, up 29 points, currently up 15 points
July 2026 Cotton: Closed Friday at 66.95, up 37 points, currently up 18 points

The spread structure suggests traders are pricing in near-term strength while maintaining a measured outlook for summer delivery months.

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