Cotton Edges Up to Start the Week with Subdued Momentum

WalletManager · 2025-12-31T15:41:17+00:00

Cotton futures showed mixed signals with minor price gains. While energy costs pressure the broader market, supply metrics remain stable, indicating steady demand in a holiday-shortened trading week.

WalletManager

2025-12-31 15:41:17

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Cotton futures are showing mixed signals as the week begins, with prices posting modest advances of 10 to 18 points. The contract strength varies across the board: March saw a modest 25-point rally into Friday’s close, while May climbed 29 points and July gained 37 points—indicating slightly firmer near-term sentiment despite the holiday-shortened trading week.

Market Backdrop: Energy and Currency Pressures

The broader commodity complex remains under pressure. Crude oil futures retreated $1.45 per barrel, settling at $56.90, which could weigh on input costs and transportation logistics in the cotton sector. Meanwhile, the US dollar index ticked up $0.054 to $97.735, a headwind for US cotton exporters looking to maintain international competitiveness.

Current Price Snapshot

The March contract ended Friday at 64.49 cents/lb (up 25 points), currently showing 12 points of gain. May futures closed at 65.78 cents/lb (up 29 points), with current trading up 15 points. July wrapped up at 66.95 cents/lb (up 37 points), trading 18 points higher as of Monday’s session.

Supply-Side Metrics Remain Stable

On the supply side, ICE certified cotton stocks held steady Wednesday at 11,600 bales, showing no change from prior levels. The Cotlook A Index posted a 50-point increase on December 24, reaching 74.00 cents—signaling tighter global spot valuations. The Adjusted World Price remained anchored at 49.99 cents/lb, unchanged from the prior report given the government holiday closure.

Adding to the picture, The Seam’s 12/24 online auction cleared 6,914 bales at an average of 61.96 cents/lb, demonstrating steady underlying demand despite the thin trading environment.

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