Cotton futures are posting strong gains Monday, with contracts trading 212 to 272 points higher across most nearby delivery months.
The October 2026 cotton contract is leading the rally, up 272 points to 80.10 cents per pound, while the December 2026 contract has climbed 212 points to 83.27 cents.
The March 2027 contract is also trading firmly higher, adding 214 points to reach 85.93 cents per pound.
A significant diplomatic development is underpinning market sentiment, with Chinese President Xi set to visit the United States this week to meet with President Trump, with trade firmly on the agenda.
Secretary Bessent traveled to China over the weekend to lay the groundwork for the upcoming talks scheduled for next week.
Macro headwinds are present in the session, with crude oil falling $4.53 per barrel and the US dollar index climbing $0.175, moves that typically create a mixed backdrop for commodity markets.
The latest CFTC Commitment of Traders data showed managed money trimming 2,267 contracts from their net long position in the week of September 15, bringing the total net long to 97,903 contracts.
The Seam reported sales of 2,496 bales on Friday at an average price of 77.26 cents per pound, reflecting ongoing physical market activity.
The Cotlook A index retreated 205 points on September 18 to settle at 92.30, while the Adjusted World Price fell 59 points last week to 68.92 cents per pound.
ICE certified cotton stocks declined by 869 bales as of September 18, leaving the certified stocks level at 35,748 bales, a figure traders continue to monitor closely.
The combination of geopolitical momentum around US-China trade relations and steady physical demand appears to be the primary catalyst lifting cotton prices in Monday’s midday session.
Market participants will be watching the outcome of the Trump-Xi meeting closely, as any progress on trade policy could have meaningful implications for US cotton export demand in the months ahead.
