Cotton Market News: Week Closes on Strong Note

bridge_anxiety · 2026-02-19T08:14:23+00:00

The cotton futures market showed positive performance in the last trading week, with contract prices rising across all months. The market remained active, supported by healthy auction volumes and stable inventory levels, contrasting with mixed signals from other commodities.

bridge_anxiety

2026-02-19 08:14:23

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The cotton futures market wrapped up the week on a positive trajectory, with trading activity demonstrating consistent strength across contract months. As the broader commodity complex showed mixed signals, the cotton sector maintained its upward momentum during year-end trading sessions.

Futures Contracts Advance Across the Board

Cotton futures contracts delivered solid performance throughout the final trading week. The March contract gained 74 points over the week, closing with 25-point gains in the Friday session. May futures added 29 points to settle at 65.78, while July contracts posted even more substantial gains of 37 points, closing at 66.95. This breadth of gains across the futures curve suggested underlying support for cotton pricing.

The Seam’s online auction activity reflected healthy market participation, with 6,914 bales traded at an average price of 61.96 cents per pound. This trading volume underscored the active nature of the physical cotton market alongside the futures trading strength.

Market Indicators and Inventory Levels

The Cotlook A Index, a key gauge of international cotton pricing trends, climbed 50 points to reach 74.00 cents during the period. Meanwhile, ICE-certified cotton stocks held steady at 11,600 bales, indicating stable storage conditions in the official inventory system.

The Adjusted World Price remained positioned at 49.99 cents per pound. Market participants noted that this benchmark price was not updated during the holiday period due to government closures, which is typical during year-end trading windows.

Broader Commodity Market Context

While cotton demonstrated upward price momentum, other key commodities exhibited different dynamics. Crude oil futures declined $1.45 per barrel, settling at $56.90, reflecting broader energy market weakness. The US dollar index appreciated $0.054 to $97.735, a factor that typically influences commodity pricing through currency translation effects.

The contrasting performance between cotton strength and oil weakness highlighted the distinct supply-demand dynamics and investor positioning across different commodity sectors during the final trading sessions of the year.

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