Cotton futures are trading 60 to 70 points lower across most contracts on Wednesday, as a fresh USDA crop report weighs on market sentiment.
The U.S. Department of Agriculture’s Crop Production report, released Wednesday morning, showed total cotton production down just 90,000 bales to 13.61 million bales for the current season.
Planted acres were revised upward by 0.62 million acres to 10.47 million, a bearish signal for traders already navigating a cautious commodity environment.
Yield estimates were trimmed by 74 pounds per acre to 798 pounds per acre, offering only modest offset to the acreage increase that dominated market reaction.
Old crop stocks were left unchanged at 4.2 million bales, while new crop stocks were revised down by 100,000 bales to 4 million bales.
The Adjusted World Price was raised by 163 points last week to 66.29 cents per pound, reflecting shifting global supply dynamics that continue to influence domestic pricing benchmarks.
The Cotlook A Index fell 50 points on Tuesday to settle at 94.45 cents, adding further downward pressure to an already softening futures market.
ICE certified cotton stocks declined by 1,772 bales on August 11, bringing the certified stocks level to 80,714 bales as of that date.
The Seam reported 517 bales sold on August 11 at an average price of 75.24 cents, indicating subdued physical market activity alongside the futures weakness.
October 2026 cotton is trading at 83.15 cents, up 6 points, while December 2026 cotton sits at 83.69 cents, down 70 points, and March 2027 cotton is at 85.58 cents, down 66 points.
The crude oil market provided little support for commodities broadly, with prices up just a penny per barrel, while the U.S. dollar index edged $0.075 higher on the session.
The combination of expanded acreage estimates and a firmer dollar created a challenging backdrop for cotton bulls, with limited near-term catalysts to reverse the current downward trend.
