EUR/US$: 1.1645
Cotton Rallies on Thursday Despite Weaker Export Sales
Barchart: Cotton futures rallied on Thursday, with the December contract pushing above 90 cents/lb and front-month contracts closing 3.04 to 3.29 cents higher, even though USDA's weekly export sales report released the same day showed a marked slowdown in new bookings. Crude oil firmed on the day, adding a supportive backdrop across the agricultural complex.
Source: Barchart
USDA Weekly Export Sales: Cotton
USDA: Weekly export sales for the week ending August 20 showed a soft week for current-crop cotton - Upland sales of 95,700 running bales for 2026/27, down about 47% from the same week last year, led by Vietnam (19,000 RB), Guatemala (14,400 RB), Bangladesh (14,000 RB), Peru (13,900 RB) and India (13,800 RB). New-crop (2027/28) sales totaled 39,600 RB, mostly to Malaysia and Guatemala. Shipments told a stronger story, however, at 181,000 RB - up about 61% year-on-year - led by Vietnam (47,900 RB), Pakistan (35,300 RB), India (18,800 RB), Turkey (15,000 RB) and Mexico (11,600 RB).
Source: USDA FAS
Brazil Sets New Cotton Export Record
Texdata: Brazil cemented its position as the world's top cotton exporter in the 2025/26 marketing year, shipping a record 3.374 million tonnes - up 19% and about 718,000 tonnes more than second-placed United States (2.656 million tonnes) - for record revenue of $5.3 billion, up 9% from 2024/25. China was the top buyer at 770,500 tonnes (23% of the total), while Bangladesh and India also stepped up purchases sharply, the latter more than 40-fold over two years. Abrapa's Danyella Bonfim credited Brazil's quality, sustainability and reliable supply, alongside trade dynamics such as US-China tariff frictions and India's temporary tariff suspension on cotton imports. For 2026/27, Abrapa projects a smaller crop of 3.9 million tonnes, with exports seen easing to 3.1 million tonnes.
Source: Texdata
Heat, Floods Threaten China Crops as U.S. Farm Purchases Loom
Reuters: Heat and heavy rain have battered China's corn, soybean and cotton regions since mid-July, raising the risk of quality and yield losses that could push China toward more imports - including from the US - just as Beijing's pledge to buy $17 billion a year of US farm goods (excluding soybeans) remains largely unfulfilled. In Xinjiang, which grows over 90% of China's cotton, prolonged heat and scant rain have cut the number of bolls per plant and raised the risk of yield losses in drought-hit fields. China imported 1.02 million tonnes of cotton in the first seven months of 2026 - almost matching all of 2025 - though US cotton made up only 114,494 tonnes of that, just 13% of what the US sold China in 2024. Analysts say further quality damage could strengthen the case for US purchases, though for now the spotlight is mostly on corn and sorghum.
Source: Reuters
Better Cotton Initiative Partners with Avalo on AI Plant Breeding
Texdata: The Better Cotton Initiative has partnered with agri-tech company Avalo to speed up the breeding of climate-resilient cotton varieties using AI, aiming to develop locally-adapted seeds that need less water and fertiliser. BCI-certified farms on the Texas High Plains, working with longtime BCI partner Quarterway Cotton Growers, have begun enrolling producers to grow Avalo's varieties for the 2026 season, with a field event planned for September. Quarterway's Todd Straley said breeding for more extreme conditions is essential for cotton to remain viable in the region, while Avalo notes that around two-thirds of its cotton is sold on brand demand for regenerative farming practices.
Source: Texdata
