FX.co ★ Cotton Futures at Near 2-Year High

Cotton futures climbed above 73 cents per pound, their highest level since June 2024, supported by a weaker US dollar and elevated crude oil prices amid ongoing restrictions in the Strait of Hormuz. Higher oil prices raise the cost of producing polyester, indirectly boosting demand for cotton as a substitute fiber. Prices also drew support from persistent drought concerns in major US cotton-growing areas, particularly across the western and southwestern Great Plains. Meanwhile, the USDA’s April WASDE report raised its global cotton production forecast for 2025–26 by 900,000 bales and increased its global consumption estimate by 560,000 bales, while leaving the US supply-and-demand outlook unchanged.