Cotton Futures Close Lower as Outside Markets Pressure Prices

Cotton futures closed lower on Friday, with contracts down 14 to 226 points across the board and the front months leading the decline. A weaker tone across outside markets and a broader risk-off approach heading into the weekend weighed on prices. December cotton finished the week 27 points lower.

Crude oil fell $2.49 per barrel on the session, while the US Dollar Index gained 0.038.

The USDA’s latest Crop Production report lowered the US cotton yield estimate by 22 pounds to 776 pounds per acre, while production was cut by 410,000 bales to 13.2 million bales. Monthly WASDE data also showed old-crop US cotton stocks reduced by 50,000 bales to 4.15 million, while new-crop carryout fell 400,000 bales to 3.6 million due to the production and carryover adjustments.

The latest NASS Cotton Ginnings report showed 222,700 running bales ginned through September 1, down 34.2% from the same period last year.

CFTC Commitment of Traders data showed managed money reducing its net-long position by 7,806 contracts as of Tuesday, leaving the position at 100,170 contracts.

Export Sales data was delayed this week. For the week ending September 3, 2026/27 sales totaled 73,854 running bales, nearly half the level reported for the same week last year but well above the previous week. New-crop 2027/28 sales totaled 2,454 running bales. Shipments reached 177,774 running bales, 36.53% above the same week last year.

The Seam reported sales of 419 bales on September 10 at an average price of 84.65 cents per pound. The Cotlook A Index rose 110 points on Thursday to 97.20. ICE-certified cotton stocks fell by 8,789 bales on September 10 to 41,626 bales. The Adjusted World Price declined 441 points on Thursday afternoon to 69.51 cents per pound.

Cotton Futures

October 2026 Cotton: 82.38, down 226 points

December 2026 Cotton: 86.06, down 216 points

March 2027 Cotton: 88.56, down 210 points

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