2025.12.1815:57:17UTC+00Cotton Futures Edge Higher

Cotton futures experienced a slight uptick, reaching just above 63.5 cents per pound after descending to a two-week low of 63.1 cents per pound on December 16. This increase was predominantly driven by short covering, while fundamental factors provided a solid foundation. Concurrently, the rise in oil prices has escalated the cost of polyester, a petroleum-based substitute, thereby enhancing the attractiveness of cotton. According to the USDA’s December 2025 World Agricultural Supply and Demand Estimates (WASDE) report, the global cotton outlook for 2025–26 has been downgraded, with anticipated decreases in production, consumption, and exports. Global cotton production for 2025–26 has been reduced by nearly 300,000 bales, reaching 119.79 million bales. In contrast, US cotton production has been adjusted upwards to 14.27 million bales from the previous estimate of 14.12 million, due to improved yields in several Southeastern and Delta states. Global consumption forecasts were also decreased by approximately 300,000 bales to 118.61 million bales, attributed to diminished mill use in Brazil, the United States, and several Central American nations.