Cotton QuickTake May 18, 2026

Markets will look for more clarity this week after disappointing Trump-Xi meetings and heavy liquidation across commodities late last week.

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Welcome to Cotton Quick Take by PCCA, your short weekly update on the factors shaping cotton markets and the broader agricultural economy. Thanks for joining us. Let's take a quick look at what's moving the market this week. Cotton markets reversed sharply lower last week after reaching new highs early in the week. Heavy liquidation across commodities, stronger inflation data, and a firmer US dollar pressured risk appetite and pushed cotton futures lower. The July contract settled at 80.61 cents per pound, down more than 400 points on the week. Markets continue watching U.S.-China trade developments, crude oil prices, and broader macroeconomic uncertainty. China agreed to purchase at least $17 billion annually in U.S. agricultural products beginning in 2026, though traders were disappointed by the lack of immediate buying announcements. According to Mike Canale, PCCA's director of merchandising, analysts believe there is a possibility of additional bales being exported to China. Parts of the Delta and Southeast received helpful moisture while much of West Texas stayed dry, though forecasts are beginning to hint at improved rain chances across portions of the Southwest.

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USDA projected slightly lower US production and tighter ending stocks for 2026-27, providing some underlying support to the market. 2025 26 export sales slowed, but shipment pace remained relatively solid. Thanks for listening to Cotton Quick Take by PCCA. Be sure to join us next week for another quick update on the markets and the stories shaping the cotton industry.