Cotton futures traded near 80 cents per pound, hovering close to their highest level since May 2024. Prices were chiefly underpinned by elevated crude oil markets, driven by ongoing disruptions in the Middle East and stalled US–Iran peace negotiations. Higher crude prices raise the cost of producing polyester, thereby lending support to cotton as a relatively more attractive natural fiber substitute.
On the supply side, drought concerns persisted across key US growing areas, particularly in West Texas, although these risks were partially offset by improved conditions in the Delta and Southeast regions.
In contrast, demand fundamentals weakened on the back of softer US export activity. The latest USDA weekly export sales report showed net sales of Upland cotton totaling 119,900 running bales for the 2025/26 marketing year, a decline of 26% from the prior week and 55% below the four-week average.
