Cotton Futures Up 20 Points as Market Rally Builds Midweek

liquidation_surfer · 2026-02-06T04:13:34+00:00

Cotton futures experienced strong growth midweek, influenced by crude oil prices and currency movement. Auction results indicate stable demand while inventory levels remain steady. Overall, traders show confidence in sustained market strength, particularly in deferred contracts.

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2026-02-06 04:13:34

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Cotton contracts demonstrate solid upward momentum during midweek trading, with futures climbing 10 to 30 points through the session. The broader commodity complex is showing mixed signals, though the up 20 point gain in May contracts particularly stands out as a key indicator of sustained buying interest. This performance reflects broader market dynamics where commodity traders are actively repositioning across multiple sectors.

Crude Oil and Currency Movements Shape Market Context

Crude oil futures are advancing $0.40 per barrel, trading at $62.79, while the US dollar index recovered $0.284 to reach $96.330 after posting weakness in the prior session. These currency and energy market shifts create the backdrop for cotton’s midweek resilience. The interplay between dollar strength and commodity prices remains a critical factor in how agricultural and industrial commodities are priced on the international stage.

Cotton Auction Results and Stock Level Updates

Recent auction activity in the cotton district name sector showed sales of 56.06 cents/lb across 10,023 bales, providing transparency into underlying demand levels. ICE certified cotton stocks increased by 2 bales on the latest reporting date, settling at 8,597 bales total. These inventory figures suggest relatively stable market conditions without excessive supply pressures that might dampen prices. The Adjusted World Price was updated to 50.99 cents/lb for the week, down 18 points from the previous week’s reading.

Key Contract Performance and Index Tracking

The Cotlook A Index declined 75 points on January 27 to 73.30 cents, reflecting global price adjustments. On the futures side, Mar 26 Cotton contracts are at 63.94, up 11 points, while May 26 Cotton—the more actively traded contract—sits at 65.65, up 20 points. The Jul 26 Cotton contract shows the strongest gains with a 29 point advance to 67.3. These upward movements across the curve suggest traders are pricing in constructive demand fundamentals for the coming months, with the consistent pattern of larger gains for deferred contracts indicating confidence in sustained cotton market strength.

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