FX.co ★ Cotton Futures at Near 1-Week High

Cotton futures climbed to nearly 64 cents per pound, marking their highest level in close to a week, as traders evaluated the latest supply and demand projections. According to the USDA's December 2025 World Agricultural Supply and Demand Estimates (WASDE) report, the global cotton outlook for 2025-26 has been revised downward across production, consumption, and exports. Global production estimates were reduced by almost 300,000 bales, bringing the total to 119.79 million bales, primarily due to diminished yields in the African Franc Zone, although this was partially counterbalanced by increased output from the United States. The US production forecast was adjusted upwards to 14.27 million bales from the previous 14.12 million, owing to higher yields across several states in the Southeast and Delta regions. Additionally, global consumption was trimmed by approximately 300,000 bales to 118.61 million bales, reflecting decreased mill activity in Brazil, the United States, and various Central American nations.