Cotton futures climbed above 62 cents per pound to a one-week high, as rising crude oil prices increased the cost competitiveness of polyester and bolstered demand for natural fibers. In its February WASDE report, the USDA raised its 2025/26 global cotton production forecast by 425,000 bales from January to 119.86 million bales. The upward revision was driven by higher output estimates for China and South Africa, partly offset by cuts for Argentina and Mexico.
Global consumption was trimmed by 200,000 bales, including a 100,000-bale reduction for Pakistan and smaller downward adjustments in several other countries. The projection for world exports was also lowered by 60,000 bales. For the United States, the 2025/26 cotton outlook saw only minor changes this month, largely in trade, with export expectations reduced by 200,000 bales amid weak sales.
The report further indicated that global ending stocks are now expected to increase by nearly 630,000 bales to 75.1 million, while US ending stocks were estimated at 4.4 million bales, up from 4.2 million in the previous month’s forecast.
