Cotton Futures Posting Gains as External Markets Lend Support

failed_dev_successful_ape · 2026-02-15T20:11:50+00:00

Cotton futures rose significantly amid positive external market influences like rising crude oil prices and a weaker dollar. The performance across contract months showed optimism, while auction results and tightening inventory indicate potential for sustained price support.

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2026-02-15 20:11:50

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Cotton futures demonstrated strength during Tuesday’s trading session, with contracts advancing between 65 and 76 points by midday, bolstered by favorable conditions in related commodity markets. The upward momentum reflects a broader pattern of strength across energy and currency markets, which are providing tailwinds for agricultural commodities.

External Market Drivers Behind the Rally

The performance of crude oil futures has been particularly supportive, with prices climbing $1.52 per barrel to reach $62.14 at midday trading. Simultaneously, the US dollar index retreated to $96.140, down $0.717, creating a more favorable environment for dollar-denominated commodities like cotton. When crude strengthens and the dollar weakens, it typically benefits commodity prices by making them more attractive to international buyers.

Performance Across Cotton Contract Months

The strength was evident across the futures curve, with Mar 26 Cotton up 76 points to 63.73, May 26 Cotton advancing 69 points to 65.37, and Jul 26 Cotton gaining 67 points to 66.97. The near-month contract showed the most pronounced gains, reflecting immediate market optimism.

Market Auction Results and Inventory Updates

Monday’s online auction through The Seam platform recorded sales at 59.58 cents per pound across 12,326 bales, providing real-world transaction data. The Cotlook A Index remained steady on January 23 at 74.05 cents per pound. ICE certified cotton stocks declined by 1,317 bales on January 26, bringing total certified inventory to 8,595 bales, indicating tightening supply conditions that may support prices going forward.

Adjusted World Price and Market Outlook

The Adjusted World Price stood at 50.99 cents per pound for the previous week, marking an 18-point decline from the week before. This benchmark, combined with reduced certified inventory levels, suggests the market is navigating competing pressures between near-term strength and longer-term pricing adjustments, offering traders multiple data points to consider in their positioning decisions.

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