Cotton QuickTake June 29, 2026

It’s a holiday-shortened week, but don’t expect a quiet one. The cotton market has two major reports to watch, beginning with Tuesday’s USDA Acreage Report, followed by Thursday’s U.S. Nonfarm Payrolls report. Together, they’ll help shape both market fundamentals and overall investor sentiment.

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

Transcript

SPEAKER_02 0:00

Welcome to this week's Cotton Quick Take by PCCA. It's a holiday shortened week, but don't expect a quiet one. The cotton market has two major reports to watch, beginning with Tuesday's USDA Acreage Report, followed by Thursday's U.S. Non-Farm Payrolls Report. Together, they'll help shape both market fundamentals and overall investor sentiment. Last week, Cotton Futures struggled to find support. December futures closed at 76.38 cents, down more than 3 cents on the week. A stronger US dollar, lower crude oil prices, and generally favorable weather across much of the cotton belt continue to weigh on prices.

SPEAKER_00 0:40

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SPEAKER_02 1:02

The good news is that speculative fund selling appears to be easing. Managed money returned to modest net buying last week, reducing concerns about another round of aggressive liquidation. Weather also continues to improve. Beneficial rainfall has reached much of the mid-south, southeast, and parts of West Texas, while the percentage of U.S. cotton growing areas experiencing drought has dropped dramatically, from nearly 98% just over a month ago to 58% today. Even so, triple-digit temperatures forecast for portions of the Southwest will remain an important watch point as the crop develops. PCCA Director of Risk Management, Corey Smith, says he's keeping his eye on the weather for the foreseeable future.

SPEAKER_01 1:43

As we continue on into summer, I think it is important that we take a step back and look at what really has been impacting the cotton market. Whether that be the strength of the US dollar, oil price fluctuations, or how the weather is impacting crop development, it all plays a key role. As we enter this stage of very important crop development, we need to look at, and what I'm going to be watching is the weather. All of most of our area entered the season with very limited soil moisture, and we always talk about the importance of a July 4th rain. So let's hope we get it.

SPEAKER_02 2:15

On the demand side, export sales softened, but shipments remained strong, once again exceeding the pace needed to reach USDA's current export forecast. That's an encouraging sign as we move through the final weeks of the marketing year. Looking ahead, once this week's reports are behind us, market attention will quickly shift to the July 10th supply and demand report and any developments in U.S. China trade discussions. Thanks for listening to Cotton Quick Take by PCCA. Have a safe and happy Independence Day. And we'll meet you back here next week.