Cotton futures surged to their 3-cent limit on Thursday, with July contracts closing at 82.20 cents per pound, driven by robust demand reflected in the USDA’s latest Export Sales report. The report indicated 162,879 running bales (RB) sold for the 2025/26 marketing year, marking a three-week high and a notable 56.61% increase year-over-year. Key buyers included Vietnam and Pakistan, highlighting strong international interest in U.S. cotton.

This uptick in cotton prices comes amid a declining U.S. dollar and fluctuating crude oil prices, which can influence commodity trading dynamics. The increased export sales, particularly for new crop contracts, signal a tightening supply situation and could lead to upward pressure on prices as demand remains strong.

Market professionals should monitor these developments closely, as sustained demand from key markets could bolster cotton prices further, impacting related sectors and potentially influencing broader commodity market trends.

Source: nasdaq.com