Cotton extends gains above 86.3 cents on weather concerns
Cotton futures trade above 86.3 cents per pound as USDA good-to-excellent crop conditions fall to 38% from 40% last week and 46% two weeks prior amid worsening weather.
Cotton futures traded above 86.3 cents per pound, approaching over a three-month high as crop conditions deteriorate.
The latest USDA crop progress report showed conditions worsening to 38% rated good-to-excellent, down from 40% last week and 46% two weeks prior.
Deteriorating weather across key producing regions, marked by drought and rising temperatures, raises the risk of lower yields and tighter global supplies, supporting prices.
In Brazil, exports surged 19% in July.
Meanwhile, El Niño conditions are projected to strengthen through September, keeping temperatures elevated and threatening yields.
In India, plantings have largely recovered following normal July rains that offset a dry June, though August and September precipitation remains critical for final output.
Still, the rally has left cotton vulnerable to profit-taking as traders lock in gains.