Cotton Futures Advance Ahead of the Week, Energy Sector Adds Pressure

The cotton market kicked off the week on a positive note, with prices showing modest upward movement across the board. March delivery contracts led the charge with a substantial 74-point jump over the previous trading week, while current session activity shows gains between 10 and 18 points for the front-month positions. The March contract closed Friday’s session at 64.49 cents per pound, up 25 points, and is currently trading up 12 points into the new week. May delivery futures wrapped up at 65.78 cents, up 29 points with a 15-point rise so far today, while July contracts settled at 66.95 cents, posting a 37-point gain and currently advancing 18 points.

Supporting the broader rally, crude oil futures staged a notable pullback, declining $1.45 per barrel to settle at $56.90, which typically provides some relief for cotton’s end-user industries. Meanwhile, the US dollar strengthened slightly, advancing to $97.735 after a $0.054 gain, a factor that can influence export competitiveness for cotton producers.

The underlying fundamentals present a mixed picture for spot market activity. The latest ICE certified cotton stockpiles held steady on Wednesday, maintaining levels at 11,600 bales—a sign of balanced supply conditions in the delivery pipeline. Meanwhile, the Cotlook A Index registered a 50-point advance on December 24, reaching 74.00 cents, signaling improved sentiment in the international reference market. The Adjusted World Price, which took a break last week due to holiday closures, remained positioned at 49.99 cents per pound.

Physical trading activity continues at measured pace, with The Seam’s 12/24 online auction recording sales of 6,914 bales at an average price of 61.96 cents per pound—prices reflecting current market dynamics and underlying demand conditions.