Wednesday Cotton Rally Gains Momentum as Export Sales Hit Year High

BridgeJumper · 2025-12-31T14:14:03+00:00

Cotton prices are rising, with solid gains seen Wednesday and a strong performance in exports. Momentum is supported by favorable commodity conditions, while market positioning remains balanced. Key contract months also show consistent price strength as the holiday period approaches.

BridgeJumper

2025-12-31 14:14:03

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Cotton futures are posting solid gains on Wednesday, with prices advancing 10 to 15 points in early trading. This follows a particularly strong Tuesday session where cotton price closed 40 to 45 points higher, signaling sustained bullish momentum in the near term.

The backdrop for this cotton price strength is becoming increasingly compelling. Export sales data released this week revealed a standout performance: 304,689 RB of cotton found buyers during the week ending December 11—marking the strongest weekly total of the current marketing year and surpassing activity levels since February. Shipment flows also accelerated, reaching 134,371 RB, a performance level not seen in five weeks.

Beyond the spot markets, the broader commodity complex is supporting the cotton narrative. Crude oil futures climbed 46 cents per barrel to settle at $58.47, while the US dollar index retreated 0.364 points to $97.590, creating a more favorable pricing environment for agricultural commodities.

Contract-Specific Price Action

The managed money positioning reflects evolving sentiment around cotton futures. According to the latest CFTC commitment of traders report covering the week of December 16, net short positions in cotton futures and options added just 180 contracts, bringing the total to 54,833 contracts. The modest positioning change suggests a relatively balanced market structure heading into the holiday period.

The online auction platform recorded sales of 12,794 bales at an average price of 59.15 cents/lb on December 22. Meanwhile, the Cotlook A Index advanced 40 points to 73.70 cents, reflecting broader international cotton price strength.

Storage and Warrant Data

ICE certified cotton stocks declined 796 bales through decertification on Monday, leaving total certified inventory at 11,600 bales. The Adjusted World Price was updated last Thursday at 49.99 cents/lb, representing a 40-point decrease from the prior week.

Futures Contract Closeouts

Cotton price performance across key contract months demonstrates consistent strength: Mar 26 Cotton closed at 64.01 (up 40 points, currently +15 points), May 26 Cotton closed at 65.2 (up 42 points, currently +12 points), and Jul 26 Cotton closed at 66.27 (up 42 points, currently +14 points).

Markets will observe holiday closures on Thursday for Christmas, with an early session scheduled for Tuesday.

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