The PCCA Podcast
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The PCCA Podcast
Cotton QuickTake August 3, 2026
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As we move into August, the cotton market is turning its attention to crop conditions, export demand, and next week's highly anticipated USDA August Supply and Demand Report.
AI-assisted narration and summarization based on original reporting and data from PCCA.
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. As we move into August, the cotton market is turning its attention to crop conditions, export demand, and next week's highly anticipated USDA August Supply and Demand Report. This week's biggest economic event will be Friday's U.S. Employment Report, which could influence expectations for interest rates and the strength of the US dollar. Last week, December cotton futures finished at 81.79 cents per pound, gaining 181 points, stronger than expected export sales, ongoing hot and dry weather, and a weaker US dollar helped lift prices. Even so, futures continue to run into resistance near the 82 cent level, suggesting the market is still searching for a stronger catalyst before making its next move.
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SPEAKER_00Weather remains one of the market's biggest drivers. Weekend rainfall brought welcome relief to parts of West Texas and Oklahoma after weeks of extreme heat, but coverage was uneven. As harvest begins in South Texas and much of the high plains crop enters a critical stage of development. Rainfall over the next couple of weeks could play a major role in determining final yield potential. PC's CA chief economist Abigail Holser said the weather will remain one of the biggest risks as August progresses.
SPEAKER_01I think the biggest thing in the market right now is that we're looking for something definitive to push us above 82 cents. New crop demand has been encouraging, and if you look at the export sales report, we've had a few weeks of really good sales. However, on the other side, there's still uncertainty where weather is concerned. We've had two weeks of 100 plus degree days and little to no rainfall, except for this past weekend where we did see good rainfall throughout the region. It was spotty, and so that really doesn't change our production outlook going forward. And so as we move into August, weather will remain one of our biggest risks, and also we'll be monitoring every crop report that comes out and weather model as well.
SPEAKER_00On the demand side, old crop export sales fell to a marketing year low, but new crop commitments were among the strongest on record, providing support to the market despite softer old crop demand. Looking ahead, traders will be watching Thursday's export sales report and Friday's employment numbers, and will already be positioning ahead of next week's August WASD report, one of the most important supply and demand updates of the year. 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.