EUR/US$ 1.1558
Cotton Rallies into the Weekend
Barchart: Cotton futures gained 120–130 points on Friday, with the December contract up 261 points for the week. Crude oil rose 21 cents a barrel while the dollar index eased $0.308. Friday's Commitment of Traders report showed managed money funds adding nearly 9,900 contracts to their net long position, bringing it to just over 62,000 contracts. Export sales data released Thursday showed old-crop commitments closing out the marketing year at just under 12 million running bales, 1% above last year and 102% of the USDA's export forecast, while new-crop business is running more than 43% ahead of last year's pace. The Seam auction saw a small sale at an average of 67.75 cents, the Cotlook A Index rose to 93.50 cents, ICE certified stocks held steady, and the Adjusted World Price was raised to 66.29 cents per pound. December cotton settled the week at 84.40 cents, with the March contract at 86.18 cents.
Source: Barchart
Cotton Market Summary as of Friday, August 7, 2026
TAMU: ICE cotton futures moved higher in stair-step fashion this week, with the December contract settling Thursday at 83.16 cents and adding another cent and a quarter Friday to close at 84.40 cents. Chinese cotton prices rose over the week while the world A-Index was mixed. Other agricultural futures were mixed, and the dollar index trended higher before partially reversing. Squaring and boll-setting rates were close to the five-year average, while the overall crop condition slipped slightly to 42% good-to-excellent. Texas stayed mostly dry and hot, while the eastern Cotton Belt saw scattered rain. Export sales for the current marketing year reflected some cancellations, while next year's sales were described as fair. Export shipments continued to run below the pace needed to hit the USDA's target. CFTC data showed an increase in net long speculative positioning, and certified stock levels were largely unchanged. Globally, factors such as the South Asian monsoon, crop damage in China's Xinjiang region and reduced planted acreage elsewhere, notably in Australia, point to a potentially tighter supply picture ahead.
Source: The Cotton Marketing Planner (TAMU)
Cotton Futures Gain Amid Crop-Weather Worries and Reserve-Cotton Supply Pressure
CCFGroup: Both Chinese (ZCE) and ICE cotton futures rose over the week on worries about new-season output. The ZCE September contract climbed from 15,675 to 16,150 yuan/mt between Monday and Thursday, while ICE December rose from 82.57 to 83.16 cents/lb over the same period. In China, renewed high temperatures returned to Xinjiang's main cotton-growing areas in early August after a brief cooldown in late July, reviving concerns about boll shedding following earlier heatwaves. In the US, the good-to-excellent rating for the week ending August 2 stood at 42%, down 4 points year-on-year, and while drought has eased across most growing areas, unusually dry conditions from eastern Texas to the lower Mississippi Valley have renewed weather worries. At the same time, China's state reserve cotton auctions have seen a 100% transaction rate since July 20, pointing to strong mill demand but also capping price gains, with cumulative auction supply expected to reach roughly 420,000 tonnes by the end of September and auctions likely extending through September. Spot cotton trading has stayed subdued as mills favor the reserve auctions. The market is now watching Xinjiang temperatures, US crop conditions and seasonal demand for further direction.
Source: CCFGroup