FX.co ★ Cotton Futures Edge Higher

Cotton futures saw a slight uptick, reaching approximately 61.8 cents per pound, marking a near one-week high. This rise is attributed to the heightened demand prospects driven by the anticipation of a possible interest rate cut by the Federal Reserve. Simultaneously, the latest US weekly sales figures, released on November 21, indicate a growing demand. For the week ending October 2, US upland cotton export sales jumped to 199,000 running bales, more than double the previous week's tally and surpassing the four-week average. On the supply front, the USDA's crop progress report highlighted that the US cotton harvest was 79% complete as of November 23, an increase from 71% the prior week. Although this is slightly below last year's 83%, it aligns closely with the 5-year average of 80%. Additionally, the USDA's November 2025 WASDE report adjusted the US production forecast upward by 900,000 bales to a total of 14.1 million, attributed to higher yields across most states. Furthermore, global cotton production estimates increased by 2.4 million bales, with a slight rise in global consumption by 50,000 bales.