FX.co ★ Cotton Futures Hover Around 1-Week Low

Cotton futures recently settled at approximately 64.6 cents per pound, remaining close to the lowest level observed in the past week, primarily influenced by the strengthening US dollar. In contrast, recent figures have shown a robust rebound in US cotton export sales for the week ending January 8, 2026, reversing the previous week's decline and indicating a resurgence in short-term demand. Concurrently, the latest report from the USDA, released in January, highlights a tightening of supply conditions for the 2025/26 season, coupled with increasing demand. Global cotton consumption projections have been raised by over 300,000 bales compared to the previous month, largely due to increased demand in China, although this is somewhat counterbalanced by reductions in Turkey and Nicaragua. Conversely, global cotton production is anticipated to decrease by over 350,000 bales, despite a 1 million-bale increase in China's output, due to declines in India, the United States, Argentina, and Turkey. Specifically, US cotton production forecasts have been adjusted downward by more than 2%, bringing the estimate to 13.9 million bales, a reflection of weaker yield performances in the Delta region.