Cotton futures experienced a robust rally on Thursday, with contracts rising between 80 to 159 points, driven by supportive outside market conditions. The US dollar index fell by $0.325 to $98.600, while crude oil prices surged by $4.06, creating a favorable backdrop for cotton. The USDA’s latest balance sheet maintained US carryout at 4.4 million bales, with the world supply increasing by 0.65 million bales to 77.04 million.

The USDA’s Export Sales report revealed 319,580 RB of cotton sold for the 2025/26 season, with Vietnam leading as the top buyer. However, new crop business was notably low at just 14,051 RB, the weakest since January. Shipments also dipped to a three-week low, indicating potential challenges in demand.

Market professionals should monitor the implications of these developments on cotton pricing trends, especially in light of fluctuating export sales and global supply dynamics, which could influence future trading strategies.

Source: nasdaq.com