FX.co ★ Cotton Futures at 2024-Highs

Cotton futures climbed to about 75.5 cents per pound, their highest level since May 2024, supported by rising oil prices, which increase polyester production costs and enhance cotton’s competitiveness as an alternative fiber. Ongoing drought concerns in key US growing areas, particularly across the western and southwestern Great Plains, further bolstered prices.

In its April WASDE report, the USDA raised its global cotton production forecast for 2025–26 by 900,000 bales, reflecting higher expected output in China, India, and Pakistan, and also increased its projection for global consumption by 560,000 bales. The US supply and demand outlook remained unchanged.