Cotton futures are experiencing a notable surge, with prices rising 40 to 45 points in Friday morning trading, following a strong close on Thursday where July contracts hit the 3-cent limit up. The USDA’s latest Export Sales report revealed robust demand, with 162,879 running bales 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. Key buyers included Vietnam and Pakistan, indicating strong international interest.

This uptick in cotton prices comes amid a weakening US dollar and fluctuating crude oil prices, which can influence commodity trading dynamics. The increase in export sales and shipments, particularly to major markets, suggests a tightening supply situation that could support higher prices in the near term.

Market professionals should monitor these developments closely, as sustained demand and rising prices could impact cotton-related equities and commodity strategies moving forward.

Source: nasdaq.com