Cotton futures surged on Thursday, with July contracts hitting the 3-cent limit up and May contracts gaining 552 points, reflecting strong demand signals. The USDA’s Export Sales report revealed 162,879 running bales (RB) of cotton sold for the 2025/26 marketing year, marking a three-week high and a significant 56.61% increase compared to the same week last year. Additionally, new crop sales reached 105,747 RB, the fourth-largest total for the 2026/27 marketing year.

This uptick in cotton sales comes amidst a backdrop of a declining U.S. dollar and falling crude oil prices, which could influence commodity trading dynamics. The recent shipment figures also indicate robust activity, with 384,608 RB shipped, the highest in five weeks. These trends suggest a tightening supply-demand balance in the cotton market.

Market professionals should note that the ongoing strength in cotton prices could signal a shift in market sentiment, potentially impacting related sectors and influencing trading strategies moving forward.

Source: nasdaq.com