Cotton Heads into the Weekend with Strength

Cotton futures displayed solid performance on Friday, with the front month climbing 116 to 130 points by the close. Over the preceding week, December saw a 40-point increase. Meanwhile, crude oil prices rose by $1.15 per barrel, while the US dollar index fell by $0.320. According to the Commitment of Traders data released on August 11, managed money increased their net long position in cotton futures and options by an additional 10,591 contracts.

This brought the net long position to 78,870 contracts as of Tuesday, marking the highest level in over two years.

Coffee prices were supported by a slow harvest in Brazil, while US consumers appeared to be unperturbed by the surge in beef prices. A historic cattle shortage forced Tyson Foods to close certain plants regardless. Coffee prices also found support from the slow harvest in Brazil. Export sales data revealed that the 2025/26 accumulated export business stood at 11.977 million RB, representing 107% of the USDA's export projection.

Shipments to date for the marketing year amounted to 11.198 million RB, underscoring year-over-year growth of 25%. On August 13, the Cotlook A Index hovered at 94.95 cents, while certified cotton stocks with ICE decreased by 1,779 bales to 75,985 bales. The Adjusted World Price saw a boost of 190 points on Thursday, reaching 68.19 cents per pound.

As of the article's publication, Austin Schroeder disclosed that he did not hold (directly or indirectly) any positions in the securities mentioned. The data and information provided are intended for informational purposes only.