Cotton futures hovered around 80 cents per pound, close to the highest since May 2024, mainly supported by elevated oil prices amid the ongoing Middle East disruptions and stalled US-Iran peace talks. Higher crude oil prices increase polyester production costs, which in turn support cotton prices as a natural substitute. At the same time, drought risks persisted across key US growing regions, particularly West Texas, partly offset by better conditions in the Delta and Southeast US. Meanwhile, demand prospects softened following weak US export sales. The latest USDA’s weekly export sales report showed net sales of Upland totaling 119,900 running bales for 2025/26, down 26% from the previous week and 55% below the four-week average.
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