Cotton Futures Extend Losses as Export Sales Show Mixed Signals

Cotton futures continued their downward trajectory on Friday morning, with contracts trading 25 to 47 points lower. The slide follows Thursday’s session where futures closed 4 to 24 points down across the board as the July contract expired. Crude oil prices retreated despite overnight geopolitical tensions, falling $1.71 at the close, while the U.S. dollar index slipped $0.034.

Weekly export sales data revealed 66,422 running bales sold for the 2025/26 marketing year in the week ending July 2, marking an improvement from the prior week and nearly tripling volumes from the same period last year. Vietnam emerged as the leading buyer with 23,500 bales, closely followed by India at 23,400 bales. New-crop sales reached 86,971 bales, a three-week high, led by Vietnam at 48,700 bales and Turkey at 30,800 bales. Shipments totaled 230,056 bales, rebounding from an 18-week low but remaining 10.05% below the comparable week in 2025. Vietnam was the top destination at 85,400 bales, with Pakistan taking 12,800 bales.

The Cotlook A Index rose 295 points on Wednesday to 90.25 cents per pound. ICE-certified cotton stocks declined by 12 bales via decertification on Tuesday, leaving certified inventory at 184,927 bales. The Adjusted World Price increased 92 points Thursday to 62.86 cents per pound.

Key contract settlements: July 2026 cotton closed at 76.16 cents, down 5 points; December 2026 cotton settled at 80.63 cents, down 4 points and currently down 47 points; March 2027 cotton finished at 81.97 cents, down 13 points and currently down 39 points.

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