Cotton Futures News: Market Sentiment Shifts Negative as Global Commodity Markets Weaken

Cotton futures markets experienced significant selling pressure on Thursday, with traders pulling back positions as broader commodity markets turned cautious. The pullback reflects a combination of factors impacting multiple asset classes simultaneously, from energy to currencies.

Cotton Prices Retreat on Thursday as Futures Contracts Fall

Cotton futures prices saw notable declines during mid-session trading, with contracts losing 35 to 40 points across the board. The March 2026 contract settled at 63.93 cents per pound, down 37 points from the previous session. May 2026 delivery fell to 65.54 cents, declining 38 points, while July 2026 contracts slipped to 67.03 cents, losing 37 points. Recent sales activity through The Seam’s Tuesday online auction documented transactions at 59.15 cents per pound, covering 17,692 bales of cotton.

The Cotlook A Index, which tracks the global cotton market, declined 25 points to settle at 74.55 cents on January 21. Meanwhile, the Adjusted World Price was revised upward to 51.17 cents per pound last week, gaining 20 points from the previous week—one of the few bright spots in an otherwise weak market environment for cotton futures news.

Broader Commodity Markets Show Weakness

The cotton retreat occurred alongside weakness in other key commodities. Crude oil futures declined sharply, dropping $1.43 per barrel to close at $60.67. The US dollar index, which often moves inversely to commodity prices, fell $0.418 to 98.145, indicating reduced demand for safe-haven currency strength. This interconnected movement highlights how global markets respond to shifting investor sentiment.

Current Cotton Futures Levels and ICE Market Data

Certified cotton stocks held steady through the ICE certification process, remaining unchanged at 10,422 bales as of January 21 following recent decertification activity. This stability in inventory levels against a backdrop of falling futures prices suggests possible supply-demand imbalances that traders will monitor closely.

Cotton futures continue to trade within volatile ranges as market participants assess economic conditions and demand signals. The combination of declining prices across multiple contract months, paired with mixed inventory signals, has traders and industry observers watching for any shift in market momentum heading into the coming weeks.