FX.co ★ Cotton Futures Remain High

Cotton futures were trading around 80 cents per pound, the highest level since May 2024, driven largely by strong speculative buying and mounting concerns over tightening supplies. In the US, the harvest outlook remains under pressure from a severe drought in Texas—potentially the worst in a decade or two—with only 11% of the crop planted so far.

At the same time, Brazil is solidifying its position in global cotton trade, recording a record volume of exports in March and breaking with the usual pattern of shipments being concentrated toward the end of the year.

Prices are also being influenced by geopolitical tensions, which continue to disrupt key maritime routes and push up freight and insurance costs. Although renewed prospects for US–Iran negotiations have contributed to some easing in oil prices, tensions in the Middle East persist, and ongoing risks around the Strait of Hormuz are adding to overall market volatility.