Cotton Futures Ease Despite USDA Production Forecast Revision Downward

Cotton futures moved lower at midday Friday, even as the USDA revised its U.S. production outlook downward, as export activity continued to fall short of expectations. Contracts declined by 140 to 147 points over the session. Crude oil fell $2.64 per barrel, while the U.S. Dollar Index rose $0.028.

The USDA Crop Production report indicated a 22-pound decrease in yield to 776 pounds per acre, with overall production reduced by 410,000 bales to 13.2 million bales. The monthly WASDE report showed old-crop U.S. cotton stocks trimmed by 50,000 bales to 4.15 million bales, while new-crop carryout fell 400,000 bales to 3.6 million bales, reflecting the production adjustments and carryover figures.

The NASS Cotton Ginnings report for the month revealed that 222,700 running bales of cotton had been ginned by September 1, representing a 34.2% decline compared to the same period last year.

Export sales, delayed this week, totaled just 73,854 running bales for the 2026/27 marketing year in the week ending September 3—nearly half the prior-year figure but a notable improvement over the previous week. New-crop 2027/28 sales came in at 2,454 running bales. Shipments reached 177,774 running bales during the week, up 36.53% from the same period a year earlier.

The Seam reported sales of 419 bales on September 10 at an average price of 84.65 cents per pound. The Cotlook A index rose 110 points Thursday to 97.20. ICE certified cotton stocks declined 8,789 bales on September 10, bringing the certified stocks level to 41,626 bales. The Adjusted World Price slipped 441 points Thursday afternoon to 69.51 cents per pound.

October 26 cotton was quoted at 83.22, down 142 points.

December 26 cotton was at 86.75, down 147 points.

March 27 cotton stood at 89.20, down 146 points.

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