Cotton futures closed higher on Monday, with contracts gaining between 16 and 68 points across the board as bearish supply signals weighed on crop quality assessments.
The December 2026 cotton contract closed at 85.48 cents, up 68 points, representing the strongest gain among the actively traded contracts on the session.
October 2026 cotton closed at 84.07 cents, up 47 points, while the March 2027 contract settled at 87.28 cents, posting a gain of 60 points on the day.
Supporting the move higher, crude oil climbed $2.55 on the session, while the US dollar index softened by $0.094, providing a modest tailwind for dollar-denominated commodity prices.
The USDA’s weekly Crop Progress report showed that 74% of the US cotton crop was setting bolls as of Sunday, with 14% of the crop reaching the bolls opening stage of development.
Condition ratings deteriorated, with the USDA pegging the crop at 38% good or excellent, a decline of 2 percentage points from the prior week’s reading.
The Brugler500 index, a composite measure of overall crop conditions, fell another 9 points to 310, signaling continued stress across cotton-producing regions.
On the physical market side, the Cotlook A Index dropped 90 points on Friday to settle at 94.05 cents, while ICE certified cotton stocks fell by 3,359 bales on August 14 to stand at 72,626 bales.
The Seam reported just 74 bales sold at the August 14 auction, fetching an average price of 71 cents, reflecting thin spot market activity heading into the back half of the month.
The Adjusted World Price was raised by 190 points on Thursday to 68.19 cents per pound, a development that could influence export competitiveness for US cotton in the near term.
With crop condition ratings declining and certified stocks tightening, traders will be watching upcoming USDA data closely for further signs of supply pressure heading into the harvest season.
