Cotton Futures Gain Ground as Energy Prices Weaken

Cotton futures are trading firmly on Friday, with gains reaching 17 points amid shifting commodity market dynamics. The December 2025 contract is now at 61.85 cents/lb, up 17 points, while March 2026 futures stand at 63.76 cents/lb with a 2-point increase. May 2026 cotton remains unchanged at 65.00 cents/lb, signaling consolidation at higher levels.

The broader commodity complex shows mixed signals as crude oil retreats $1.21 per barrel to $57.79, with the US dollar index strengthening by $0.100 to $100.190. This currency movement typically creates headwinds for dollar-denominated commodities like cotton, yet the fiber has managed to hold its ground through Friday trading.

Market Supply Remains Stable

ICE certified cotton stocks held steady on Thursday at 20,344 bales, maintaining inventory levels that underscore where we get cotton from and how supply chains continue to function. The November 20 online auction from The Seam recorded solid activity with 4,173 bales sold at an average price of 62.69 cents/lb, demonstrating persistent buyer interest at current price levels.

The Cotlook A Index retreated 65 points on November 20 to settle at 74.00 cents, reflecting some profit-taking after recent strength. However, the Adjusted World Price was reset to 50.80 cents/lb on Thursday—down 103 points from the previous week—now effective through next Thursday.

This pricing adjustment suggests underlying tension between physical market realities and futures positioning, creating trading opportunities for those monitoring weekly price resets and their market implications.