U.S. Cotton: Futures Close Tuesday with Gains

Barchart: Cotton futures closed 8 to 77 points higher across most contracts on Tuesday, even as crude oil fell and the dollar eased. Late on Monday, the White House announced a Harvest Fuel Relief Program providing $8 billion in assistance to producers because of high fuel prices. The Seam sold 1,394 bales on October 19 at an average of 73.51 cents/lb, the Cotlook A Index slipped 15 points to 90.95 cents, and ICE certificated stocks rose 1,489 bales to 16,618. Dec 26 settled at 80.88 (+75), Mar 27 at 84.18 (+75) and May 27 at 85.86 (+77).
Source: Barchart

U.S. Cotton: Second Higher Close, Little ICA Business for U.S. Cotton

Calcot – Cindy Walters: December settled at 80.88, up 75 points, for a two-day gain of 88 points, still within its eleven-session range of 79.23–82.25 cents but slightly above the 80.74 midpoint. It closed above its 20-day moving average for the first time since September 10, a plus for short-term bulls. Volume remained light at 38,788 contracts, yet open interest set a sixth consecutive record at 399,833 contracts. Reports again pointed to substantial sales at last week's ICA event in Istanbul, but only a trickle involved U.S. cotton, with Brazil the main competitor, along with Australia. Certificated stocks rose by 1,500 bales in Galveston, Dallas and Houston. A Reuters poll found 94 of 100 economists expect the Fed to hold rates next week, while all expect a December hike. Grains extended their slide, with corn down 9.1% over ten sessions, while crude oil eased after seven consecutive gains as the U.S.–Iran war continued to threaten energy supplies.
Source: Calcot

Türkiye: Cotton Supply Gap Widens to 1 Million Tons

E-Textile Magazine: Türkiye's cotton production is expected at about 500,000 tons in 2026, against industry demand of around 1.5 million tons, leaving a gap of roughly 1 million tons to be covered by imports, according to Barış Kocagöz, candidate for chairman of the İzmir Commodity Exchange. Processing capacity is about 2 million tons, but utilisation of around 65% has lowered current needs. Kocagöz blames rising input costs, which make it hard for growers to compete with world prices, and support payments that have not kept pace. He proposes a production target of at least 1.25 million tons, a refund of the special consumption tax on farm diesel, wider use of drip and sprinkler irrigation, more cotton trading through the licensed warehouse system and a refocus of Aegean cotton on longer staple, higher-value production.
Source: E-Textile Magazine

Global: Cotton Benchmarks Ease Over the Past Month

Cotton Incorporated: Most cotton benchmarks fell over the past month, retreating from late-August highs before a slight recovery. December futures dropped from 93 to 78 cents/lb between late August and early October before rebounding to about 80 cents, while the A Index briefly topped 100 cents in early September, fell to 88 and now stands near 91. Chinese prices eased from 124 to about 120 cents/lb, Indian from 94 to 86 cents and Pakistani from 85 to 81 cents. In its October report, USDA raised 2026/27 world production by 636,000 bales to 118.0 million, mill use by 162,000 to 123.1 million and ending stocks by 822,000 to 70.7 million. Pressures on prices included weak mill buying, China's reserve auctions of more than 400,000 tonnes and the absence of U.S. purchase commitments from China. Higher oil prices could improve cotton's competitiveness against polyester, though a persistent price gap remains between the two fibers.
Source: Cotton Incorporated

China: Australian Cotton Remains Top Supplier as September Imports Fall

CCFGroup: China imported 54,700 tonnes of cotton in September, 40,300 tonnes less than a year earlier and 25,800 tonnes below August, mainly due to tight import quotas. Imports for January–September still totaled 1.16 million tonnes, up 70.6%. Australia remained the top supplier with 40,400 tonnes, a 74% share, at an average of 89.2 cents/lb, followed by Afghanistan (10%) and Brazil (6%, down from 13% a year earlier). U.S. cotton accounted for just 1,400 tonnes. China has allocated 894,000 tonnes of 1% duty quotas for 2027, and cotton is included in the $30 billion package of reciprocal tariff reductions on U.S. imports announced on September 28. Imports are expected to remain low in October.
Source: CCFGroup

U.S. Cotton: New Insurance Flexibility and Trade Mechanism Under the Great American Cotton Plan

AgWeb – Rhonda Brooks: USDA announced on October 16 two new actions under the Great American Cotton Plan. For the 2027 crop year, eligible growers may buy multiple crop insurance endorsements, such as STAX and SCO, even if enrolled in the ARC or PLC programs; according to Texas Tech economist Darren Hudson, SCO favors farms whose yields consistently beat county averages. A new trade mechanism starting in 2027 will verify U.S. cotton purchases by Bangladesh, Indonesia, Cambodia and Malaysia, which will in return receive preferential tariff treatment on apparel made with U.S. cotton. Hudson also believes USDA underestimates West Texas abandonment, which he puts near 60% compared with roughly 34% in USDA's assumption; if he is right, U.S. production and ending stocks would be lower and the outlook more bullish than the WASDE indicates.
Source: AgWeb

The article summaries were generated using ΑΙ.