The PCCA Podcast
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The PCCA Podcast
Cotton QuickTake August 17, 2026
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After a packed week of USDA and economic data, cotton heads into a quieter stretch with fewer major scheduled catalysts.
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. After a busy week of USDA and economic data, cotton enters a quieter stretch, with weather and crop conditions moving back to center stage. Cotton finished last week slightly higher, with December futures settling at 84.80 cents per pound. The market spent much of the week digesting USDA's August estimates before a stronger move on Friday pushed prices back toward the upper end of their recent trading range.
SPEAKER_00Learn more at PCCA.com slash cashmarketing. Again, that's PCCA.com slash cashmarketing.
SPEAKER_02USDA's August report brought a few surprises. U.S. Planet Acreage increased by more than 600,000 acres, but a lower yield estimate largely offset that increase, leaving production at 13.61 million bales. The more supportive news came from the global balance sheet, where USDA raised world cotton consumption by nearly 1 million bales and lowered ending stocks by more than 1.5 million bales. Consumption is now projected to exceed production by more than 5 million bales. PCCA Director of Merchandising Mike Canali says recent changes in consumption are proving positive for cotton.
SPEAKER_01One of the most interesting things that I think is going on and very positive for cotton is what we're seeing in consumption. Last year consumption was revised up almost 1 million bells in the USDA WASDI report. And then this year's consumption was also raised up close to a million bells, giving really good support to the market. And I think that's why we find ourselves here in the mid-80s. Some things to watch going forward is the weather in the U.S. and whether we'll hold on to that production number of 13.6 million, as that could be reduced and that could tighten up the Indian stocks even more, giving us more support and more chances for higher prices.
SPEAKER_02Weather remains a major question, particularly in the Southwest. Weeks of hot, dry conditions have taken a toll on the West Texas crop, and conditions over the next few weeks could still influence final yield potential. Outside markets have also become more supportive. A weaker US dollar, firmer crude oil prices, and renewed fund buying helped cotton late last week. Meanwhile, softer inflation and economic data have reduced expectations for another near-term Fed rate hike. Looking ahead, Monday's crop progress report and Wednesday's Fed minutes will be the key events to watch as the market searches for its next catalyst. 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.