Cotton QuickTake August 31, 2026

Cotton finished the final full week of August with continued momentum after December futures hit a life-of-contract high, posting a strong week of gains. 

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

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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 closed out the final full week of August with strong momentum. December futures settled at 91.38 cents per pound, gaining more than 300 points for the second consecutive week and reaching new life of contract highs. Speculative buying remains the primary driver as funds continue moving into agricultural markets despite little change in the underlying fundamentals. Keith Lucas, PCCA's vice president of marketing, provided some insight on what's driving cotton's recent momentum and the importance of demand and supporting prices moving forward.

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We are currently seeing speculative money continuing to pour into commodities in general, and cotton in particular. The trade is holding a large hedge position in short futures and cannot change the current momentum of the spec money. If demand can hold at the forecast levels, we should see good support for prices throughout the season. Crop conditions remain a concern.

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U.S. conditions declined for the fourth straight week as drought expanded across the cotton belt. With ginning underway in South Texas, attention is turning to crop stress and potential yield reductions across West Texas, Oklahoma, and Kansas.

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Before we get back into Cotton Quick Take, here's a quick reminder from PCCA. Cotton marketing isn't one size fits all. PCCA's full suite of marketing choices gives farmers flexible tools and strategies backed by experts, along with the strength of a farmer-owned co-op. Learn more at PCCA.com slash marketing choices. Again, that's PCCA.com slash marketing choices.

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Outside markets also created some pressure as elevated inflation and hawkish signals from the Federal Reserve strengthened the US dollar. Meanwhile, export sales provided some encouragement. Upland net sales totaled 95,700 bales with purchases spread across several markets. Still, demand remains a key focus as higher prices have caused some mills to hold off on new orders. Looking ahead, crop conditions, demand, and speculative activity will remain key factors to watch.