American Cotton Rate Builds Weekly Momentum as Futures Post Solid Gains

Cotton futures wrapped up the trading week on a positive note, with contract prices advancing 14 to 17 points at the close on Friday. The December contract delivered impressive results, tallying a 156-point jump for the entire week—a testament to strengthening demand in the sector.

Price Performance and Market Backdrop

Concurrent commodity movements reflected mixed signals across energy markets. Crude oil futures retreated 67 cents per barrel, settling at $58.40, while the US dollar index weakened by $0.092 to $99.430. Despite headwinds in crude, the American cotton rate maintained its upward trajectory throughout the session.

The front-month contract—Dec 25 Cotton—closed at 62.91, up 14 points, while Mar 26 Cotton climbed to 64.71 on identical gains. May 26 Cotton demonstrated the strongest performance of the trio, advancing 17 points to finish at 65.92. This graduated pricing structure across contract months signals growing confidence in the market’s supply-demand dynamics.

Export Momentum and Physical Trading Activity

USDA’s latest Export Sales report provided substantive support for the rally. The agency documented 175,678 running bales (RB) sold during the week ending 10/16—a robust 11.45% increase compared to the previous week. Even more encouraging, weekly shipments reached 159,631 RB, marking the highest volume achieved thus far in the marketing year.

Physical spot trading through The Seam’s November 26 online auction reflected a healthy market appetite. Participants traded 3,553 bales at an average price of 61.16 cents per pound, indicating active engagement from buyers across the supply chain.

Global Benchmarks and Inventory Levels

International pricing indicators pointed in favorable directions. The Cotlook A Index surged 45 points on Thursday, reaching 74.95 cents—a significant milestone for the benchmark. Meanwhile, ICE-certified cotton stocks remained steady as of 11/26, holding at 20,344 bales, suggesting balanced inventory conditions.

The Adjusted World Price pulled back modestly, declining 3 points to 50.77 cents per pound week-over-week. This modest retreat at the global level contrasted with the strength displayed by American cotton rate contract months, underscoring regional strength within the US market.

Bottom Line

The cotton complex closed the week demonstrating resilience, with futures posting consistent gains across the maturity curve and export flows accelerating to year-to-date highs. The convergence of strong physical demand, positive export news, and firm pricing has established a constructive foundation heading into the final stretch of the marketing year.