Cotton prices increased by 35 to 57 cents on Wednesday, following a Tuesday session where front-month futures closed down 105 to 145 points. Broader market trends saw the US dollar index rise $0.366 to $98.190, and crude oil gain $2.83 to close at $102.05.
The annual USDA Cotton Ginnings report indicated a total of 13.539 million running bales (RB) ginned for the 2025/26 crop, a decrease of 535,750 RB from the previous year. Concurrently, the monthly WASDE update projected the 2025/26 cotton yield at 852 pounds per acre, with production estimated at 13.9 million bales. Old crop ending stocks remained at 4.4 million bales, while new crop stocks for 2026/27 were set at 3.9 million bales, with initial production forecasts at 13.3 million bales.
Market activity on Monday, as reported by The Seam, included sales of 14,782 bales at an average price of 79.36 cents per pound. The Cotlook A Index climbed 185 points on May 8, reaching 94.65 cents. ICE certified cotton stocks also increased by 1,997 bales on May 8, bringing the total certified stocks to 184,218 bales. Additionally, the Adjusted World Price rose by another 393 points last week to 69.59 cents per pound.
Regarding specific contracts, July 2026 cotton closed at 86.32 cents, down 145 points, but was currently up 37 points. December 2026 cotton closed at 86.28 cents, down 112 points, and was currently up 31 points. March 2027 cotton finished at 86.78 cents, a drop of 116 points, but was currently up 28 points.
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