Cotton futures extend losses as 2025/26 export sales reach 102% of USDA forecast
Cotton futures extended early-week weakness, with front months under renewed pressure despite managed money increasing net longs. Late-season 2025/26 export sales have effectively reached the USDA full-year forecast, implying tight nearby availability, yet falling prompt prices suggest the tightness is now transmitting stress into the futures curve. Softer crude and a slightly weaker USD are secondary inputs, while limited Texas precipitation adds background supply risk.
Affected assets
NCCOCOTTON2USD/USDT+1.09%
AI Insight · NCCOCOTTON2USD/USDTAI Insight
▼ Bearish
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U.S. cotton futures extended early losses on Monday morning, with the most-active contracts down more than 100 points. Export Sales data show 2025/26 export sales have reached 102% of the USDA full-year projection with only two reporting weeks left, indicating effective global supplies are largely exhausted. Speculative net long positions rose to 53,209 contracts, even as nearby prices accelerated lower, suggesting tight spot-market conditions are feeding pressure into the futures curve.