EUR/US$ 1.1515
Cotton Rallies into the End of the Month
Barchart: Cotton futures closed the Friday session 53 to 112 points higher, with the December contract settling at 81.79 cents/lb for a 181-point weekly gain. Crude oil rose sharply while the US dollar index was little changed. Accumulated export sales stand at 12.032 million RB, 102% of USDA's export target, while shipments of 10.908 million RB represent 93% of that goal, lagging last year's 96% pace at this point in the season. New crop business of 2.879 million RB is up 36.7% year-over-year. The Cotlook A Index fell 100 points Thursday to 88.75 cents, ICE certified stocks were unchanged at 90,699 bales, and the Adjusted World Price rose 84 points to 64.66 cents/lb.
Source: Barchart
Understanding Cotton Demand, Exports and Industry/Policy Efforts
The Post-Searchlight (Don Shurley): U.S. cotton exports typically account for about 86% of production, with China, Bangladesh, India, Indonesia, Pakistan, Turkey, Vietnam and Mexico among the top destinations. Domestic mill use has fallen sharply since the 1990s, from around 11 million bales to under 2 million bales today, a shift linked partly to the WTO's 1995 establishment. The U.S. industry faces a shrinking mill base, slowing global cotton demand, competition from man-made fibers, and rising loss of market share to Brazil. Current initiatives include the U.S. Cotton Trust Protocol (now covering 25% of U.S. cotton acres), the Buying American Cotton Act (tax credits for domestically grown cotton), the "Plant Not Plastic" consumer campaign, and USDA's "Great American Cotton Plan," aimed at boosting U.S. mill use and improving trade. The author argues that reviving U.S. market share ultimately depends on winning consumer preference for cotton over synthetic fibers.
Source: The Post-Searchlight
Cotton Market Summary as of Friday, July 31, 2026
The Cotton Marketing Planner (Dr. John Robinson, Texas A&M): ICE cotton futures traded sideways early in the week before rallying, with the Dec'26 contract settling Friday at 81.79 cents/lb. Chinese cotton prices eased slightly this week while the world A-Index was mixed. Corn, soybeans and KC wheat drifted gradually lower, crude oil traded sideways, and the dollar index stair-stepped down. Squaring and boll-setting rates were exactly on the five-year average pace through July 26, with the crop rated 46% good-to-excellent and another 38% fair. Texas skies turned hotter and drier while the eastern Cotton Belt saw scattered rain. Weekly export shipments remained well below USDA's target. Globally, factors such as the South Asian monsoon and reduced acreage (notably in Australia) could point to a tighter supply picture, while falling certified stock levels may be easing the market's demand-side caution.
Source: The Cotton Marketing Planner
Mali Expands Cotton Processing to Capture More Value From Its Top Cash Crop
Ecofin Agency: Mali has established a new state-owned company, Société des Textiles du Mali, to expand domestic cotton processing — spinning, weaving, knitting, dyeing, finishing and garment manufacturing — as part of plans for a cotton-processing plant with 40,000 tonnes of annual capacity. The move follows earlier efforts such as the 2022 Mali Spinning Company (SOMAFIL) project and a 2025 partnership with German consultants on an integrated textile complex. Currently, less than 5% of Mali's cotton fiber is processed domestically. Cotton is Mali's second-largest export after gold, and the push aims to reduce exposure to falling global prices: the Cotlook A Index dropped for a third straight season, averaging 79.6 cents/lb in 2024/25, its lowest level since 2020/21, with the World Bank forecasting a further 3.5% price decline in 2026.
Source: Ecofin Agency
