Cotton Market News: Futures Retreat Amid Softer Export Outlook

StableGenius · 2026-03-10T13:06:56+00:00

Cotton futures experienced a decline, influenced by broader commodity pressures and disappointing export sales, with net short positions increasing among speculators. Despite some inventory growth, the overall market sentiment remains weak.

StableGenius

2026-03-10 13:06:56

Abstract generation in progress

Cotton futures declined across the board as trading wrapped up for the week, with nearby contracts losing 15-20 points while March delivery managed to post a 105-point weekly gain. The pullback reflects broader pressure on agricultural commodities, as crude oil retreated 3 cents per barrel to close near $62.81 and the US dollar index declined to $96.770. Markets will observe President’s Day closure on Monday.

Export Sales Disappoint Against Historical Benchmarks

The latest USDA export sales data revealed 8.034 million running bales of cotton commitments—a concerning 12% drop compared to the previous year. This total represents just 71% of the USDA’s revised export projection, a notable slip from the typical 88% pace maintained historically. The weaker commitment rate suggests potential headwinds for cotton market participants as new shipment demand appears to be moderating.

Positioning Shifts as Speculators Reduce Bullish Bets

Speculative net short positioning expanded by 3,856 contracts during the week ending February 10, according to CFTC data, signaling renewed caution among money managers. Managed money traders held net short positions of 75,602 contracts as of Tuesday, underscoring the increasingly defensive tone in cotton market sentiment heading into the weekend break.

Inventory Growth Continues While International Benchmarks Rise

Physical cotton sales recorded 15,617 bales through The Seam, with transactions averaging 57.90 cents per pound. The Cotlook A Index climbed 25 points on Thursday to settle at 73.55 cents, suggesting international cotton market resilience despite domestic softness. Meanwhile, ICE-certified inventory levels expanded by 3,808 bales to reach 106,040 total bales as of February 12.

The Adjusted World Price fell 39 points from the previous week to 49.39 cents per pound by Thursday afternoon, reflecting the broader pressure visible across all contract months. March cotton closed at 62.11 (down 18 points), May cotton settled at 64.13 (down 20 points), and July cotton ended at 65.82 (down 16 points), painting a uniform picture of cotton market weakness extending through the quarter.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.