Cotton Extending Higher on Monday Morning

Cotton prices surged upward by 34 to 47 points on Monday morning, marking a significant rally. Futures experienced a similar upturn on Friday, with the front month climbing 116 to 130 points at its close. December cotton saw a 40-point increase over the preceding week. Meanwhile, crude oil prices rose by $1.15 per barrel, and the US dollar index fell by 0.320 points.

According to the Commitment of Traders data, managed money boosted their net long position in cotton futures and options by an additional 10,591 contracts throughout the week ending on August 11. This net long position stood at 78,870 contracts as of Tuesday, the highest level in over two years.

The commodity complex seems to be following a pattern of increased prices on Monday mornings. Wheat prices, for instance, are also projected to rise, with December SRW Wheat trading at higher levels. Export sales data for the 2025/26 season shows accumulated export business at 11.977 million RB, meeting the USDA's projection. Shipment volumes reached 11.198 million RB, marking the end of the marketing year. The new crop business at 4.026 million RB is 25% higher than the same period from the previous year.

The Cotlook A Index remained stable at 94.95 cents on August 13, while ICE certified cotton stocks dropped by 1,779 bales on Wednesday, bringing the certified stocks level to 75,985 bales. The Adjusted World Price was increased by 190 points on Thursday to 68.19 cents per pound. As of the publication date, Austin Schroeder did not hold any positions in the securities discussed in this article. All information and data provided in this report are for informational purposes only.