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

Cotton futures extended their rally to climb above 69 cents per pound, the highest level since April 2025, supported by a weaker US dollar and short-covering by speculators. Market dynamics were further shaped by signs of strengthening demand alongside adverse weather in major cotton-producing regions.

According to the USDA’s latest weekly export sales report, net sales of upland cotton for the current marketing year reached 253,200 running bales in the week ended March 5, a 68% increase from the previous week. This signals a rebound in new bookings after the slowdown recorded in the prior reporting period.

At the same time, near-term weather conditions in the US cotton belt appear challenging. Currently, 88% of the region is experiencing drought, with record-high March temperatures and very low precipitation. Forecasts call for sharply warmer temperatures this week, including the potential for new record highs, accompanied by strong winds and blowing dust.