FX.co ★ Cotton Futures at Over 2-Month High

Cotton futures have climbed above 65 cents per pound, reaching their highest point since early November. This surge is attributed to a weaker dollar, which has bolstered commodity prices amid renewed concerns over the Federal Reserve's independence. Investors are now turning their attention to the upcoming January US Supply and Demand (WASDE) report for additional insights into domestic and global market conditions. In a recent update, the USDA's weekly export sales report, dated January 9, revealed that US cotton export sales for the current marketing year amounted to 98,000 running bales for the week ending January 1. This figure represents a decline from the 134,000 bales recorded the previous week. In Brazil, cotton exports reached 452.5 thousand tons in December, setting a new monthly record and surpassing the previous peak of 415.6 thousand tons achieved in January 2025, according to data released on January 6 by the Secretariat of Foreign Trade (Secex).