US Cotton Price Edges Higher as Year Winds Down

DEXRobinHood · 2026-01-04T15:18:38+00:00

As 2025 concludes, US cotton futures show positive gains, reflecting overall commodity strength. Key indicators include a surge in the Cotlook A Index and stable ICE certified stocks, suggesting bullish momentum for cotton prices.

DEXRobinHood

2026-01-04 15:18:38

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As we enter the final trading day of 2025, US cotton futures are showing positive momentum with front-month contracts gaining 17 to 20 basis points. This rally reflects broader strength in the commodity complex heading into year-end.

Market Movement and Related Commodities

Cotton futures experienced some pullback on Tuesday, settling just 5 points away from unchanged territory. Notably, crude oil futures have retreated 13 cents per barrel, now trading at $57.95. Meanwhile, the US dollar index has appreciated $0.188 to reach $97.920, which typically influences commodity pricing dynamics.

Key Market Indicators

The Cotlook A Index surged 50 points on Monday, reaching 74.50 cents—a positive signal for the broader cotton market. The Adjusted World Price was refreshed Monday morning to 50.02 cents/lb, marking a modest 3-point increase from the previous week after holiday-related delays.

ICE certified stocks remained stable on December 29, holding at 11,600 bales. Physical market activity showed the Seam’s online auction with sales volume of 23,018 bales on December 29, with an average price point of 59.79 cents/lb.

Cotton Futures Contracts Performance

Front-month contract (Mar 26): Closed at 64.32, down 3 points intraday, but currently trading 17 points higher

Mid-contract (May 26): Closed at 65.64, up 1 point, with current gains of 19 points

Deferred contract (Jul 26): Closed at 66.85, up 1 point, currently up 20 points

The incremental strength across the forward curve suggests sustained interest in US cotton price appreciation as year-end approaches, with each successive contract month exhibiting consistent bullish positioning.

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