Cotton QuickTake May 26, 2026

Markets are searching for direction this week following another volatile round of commodity liquidation and a sharp pullback across cotton futures in recent sessions. 

AI-assisted narration and summarization based on original reporting and data from PCCA

Transcript

SPEAKER_02 0:00

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 remain under pressure following another volatile week in commodities and outside markets. July cotton futures settled at 77.42 cents per pound, down more than 3 cents on the week, while December futures closed at 79.33. Much of the market movement continues to be driven by macro headlines, especially developments involving Iran and the Strait of Hormuz. Volatile crude oil prices, disappointment over the lack of meaningful progress in US-China trade talks, and broader commodity sell-offs all weighed on cotton futures last week, sending the market roughly 11.5 cents lower from its recent highs. At the same time, the market is also continuing to monitor developments out of China and India, including ongoing trade discussions, potential Chinese reserve activity, and growing speculation that India could again remove its cotton import duty. Corey Smith, Director of Risk Management at PCCA, said if India removes the cotton import duty, it could help support foreign cotton demand later this year.

SPEAKER_01 1:14

Eyes will be on the cotton development summit happening in China this week to see if any U.S. China cotton purchases will materialize. We'll also be watching India to see if they will temporarily suspend the cotton import duties. The rumors are circulating they might do this, and they did it last year, and it should be supportive of cotton prices if they choose to do it again.

SPEAKER_02 1:34

Meanwhile, improved rainfall across parts of Texas and the cotton belt added additional pressure as traders began factoring in the possibility of improved early crop conditions. However, drought concerns still remain widespread across much of the region, and the market will continue monitoring whether recent moisture is enough to create lasting improvement as planting season moves forward. On the demand side, export sales remain supportive. New crop sales were stronger than expected, led by Pakistan, while current crop shipment pace continues tracking above the level needed to meet USDA's current export forecast.

SPEAKER_00 2:08

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SPEAKER_02 2:27

Looking ahead, traders will be watching Friday's PCE inflation report, delayed export sales data, and upcoming USDA acreage and supply-demand reports as markets search for clear direction heading into June. 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.