Cotton QuickTake June 8, 2026

After a difficult start to June, the market's focus is beginning to shift from macro-driven selling toward the supply-side story, with Thursday's WASDE report and the June 30 Acreage report now in view.

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

Transcript

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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 futures came under significant pressure last week as a broad risk-off sentiment swept through commodity markets. Lower crude oil prices, continued fund liquidation, improving crop conditions, and a stronger US dollar all weighed on prices, despite another week of solid export demand. By Friday's close, July futures settled at 73.75 cents per pound, while December futures finished at 77.48 cents. Keith Lucas, PCCA's Vice President of Marketing, provided some insight into how geopolitical tensions are impacting commodity prices.

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Global uncertainty related to the ongoing conflict in Iran continues to have an impact on commodity prices. Cotton has moved lower, but still shows positive fundamentals for new crop and new crop prices.

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Weather remains a key market driver. Recent rainfall has improved moisture conditions across several cotton growing regions, including portions of West Texas. Drought coverage continues to decline, planting progress is near the five-year average, and forecasts call for additional moisture in some production areas. As a result, weather-related risk premium has continued to fade from the market. On the demand side, export sales remain supportive. Upland sales increased from the previous week, led by buyers in Vietnam, Pakistan, and Turkey, while shipments remain slightly above the pace needed to meet USDA's current export forecast.

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Looking ahead, traders will be focused on Wednesday's Consumer Price Index Report for clues on future Federal Reserve Rate decisions. Thursday's WASDI report will be the main event of the week, with markets watching closely for any changes to U.S. and global supply and demand estimates. Attention is also beginning to shift toward the June 30 acreage report, which is expected to become an increasingly important market driver in the weeks ahead. 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. AI assisted narration and summarization based on original reporting and data from PCCA.