The PCCA Podcast
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The PCCA Podcast
Cotton QuickTake August 10, 2026
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Cotton heads into a busy week with Wednesday’s USDA supply and demand report at the center of attention, while crop conditions, inflation data, export demand, and outside markets could all add to volatility following last week’s rally.
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. Cotton finished last week sharply higher, with December futures settling at 84.40 cents per pound, up 261 points, and reaching their highest level since mid-May.
SPEAKER_00After struggling to break through 82 cents, prices gained momentum as fund and technical buying moved into the market.com slash cashmarketing. Again, that's pcc a dot com slash cash marketing.
SPEAKER_02Weather also contributed to the rally. Hot, dry conditions kept concerns elevated across the Southwest, with Texas cotton rated good to excellent falling to 28% and Oklahoma dropping to just 10%. Unfortunately, the most recent reminder of these types of crop conditions data is the 2023 crop, which underperformed. With much of the crop in an important stage of development, August weather will remain a key factor for final yield potential. Looking ahead, Wednesday's August WASD report will take center stage. The USDA will release its first state-by-state production estimates of the season, along with updated acreage and yield projections. Traders will be watching closely for any changes to U.S. production and ending stocks. With more insight into the WASD crop production and more, here is PCCA merchandiser David Canali.
SPEAKER_01This week's USDA supply and demand release will be interesting. The WASD will come out on Wednesday morning, and we will see what USDA's thoughts are for the world's balance sheet. On the production side, with recent crop ratings on the decline in West Texas, a smaller U.S. crop is possible. With hotter and drier global weather, we could also see declines in production for China and India. The Chinese reserve has been selling 100% of daily offers since the auction began. If world consumption can remain steady near the 121 million bells estimates that we have seen in the last couple of months, it will confirm that the New York futures run-up the last week is justified.
SPEAKER_02The broader economy could also influence cotton. Key inflation data is due this week, with softer readings potentially pressuring the dollar and supporting commodities. Thursday's export sales report will capture the transition into the 2026-27 marketing year, while also including the final day of the 2025-26 season. New crop demand will stay in focus after sales reach 242,100 bales in the latest report. Thursday's export sales report will also provide the first look at demand in the new marketing year after new crop sales reach 242,100 bales in the latest report. With crop conditions, the WASDI, economic data, and export demand all in focus, cotton could have another active week 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.