Cotton Market Slides Amid Weak Export News

Cotton prices are retreating sharply in early Friday trading, marking another challenging session for the commodity as global trade flows show signs of slowing. The market remains under pressure from multiple headwinds, including mixed signals from major trading partners and shifting export patterns that suggest underlying demand weakness.

Friday’s Price Decline Extends Market Weakness

The cotton market entered Friday trading with significant losses, with prices falling 22 to 28 points in the opening hours. This decline represents a continuation of Thursday’s downward momentum, when futures contracts closed between 9 and 25 points lower across various delivery months. The near-term technical picture remains challenged, with March 2026 cotton closing Friday’s session at 63.48 cents per pound (down 25 points), May contracts settling at 65.37 (down 9 points), and July deliveries at 67.01 (down 9 points).

The broader market environment shows mixed energy dynamics. Crude oil futures gained $2.28 per barrel to settle at $65.49, while the US dollar index declined $0.264 to close at $96.010. These cross-market movements highlight the complex interplay between energy prices and currency valuations that often influence agricultural commodities like cotton.

Export Sales Data Highlights Shifting Trade Patterns

Recent export activity reveals notable weakness in cotton demand. Export sales totaled just 203,666 running bales in the most recent reporting period, marking a 3-week low and signaling reduced buyer appetite. Trade flow data shows Pakistan purchased 52,000 running bales, while Vietnam acquired 45,600 bales and China imported 38,800 bales. Actual shipments reached 257,036 bales for the week—the largest volume since May—driven primarily by Vietnamese buyers taking delivery of 114,400 bales, with Turkey importing 37,600 bales.

November cotton exports, as recorded by census trade data, totaled 539,059 bales, representing a 4-year low for that month and underscoring persistent challenges in the global market. Meanwhile, a recent online auction conducted through The Seam showed sales activity at 59.34 cents per pound for 9,834 bales, indicating minimal premium demand for cash market cotton.

Global Cotton Indicators Point to Broader Market Pressure

International cotton price benchmarks reflect the broader bearish sentiment. The Cotlook A Index moved back up 85 points on January 27 to settle at 74.15 cents per pound, providing limited support to the downtrend. The Adjusted World Price was updated to 50.23 cents per pound, down 76 points from the previous week and showing accelerating weakness in the benchmark pricing framework.

Meanwhile, ICE certified cotton stock levels edged up by 3 bales, reaching 8,600 total certified bales as of January 28. These inventory levels remain relatively stable but do little to counter the prevailing bearish sentiment in cotton news and market commentary as traders digest the latest export figures and economic indicators affecting global demand for the fiber.