Cotton futures extend gains near two-year highs on weather risks
Cotton futures rose above 90 cents per pound near a more than two-year high as adverse weather threatened crops. USDA’s crop progress showed 37% good-to-excellent versus 38% prior.
Cotton futures rose above 90 cents per pound, remaining near a more than two-year high as adverse weather continued to threaten crops.
High temperatures and heavy rainfall are damaging crops across key growing regions, while the persistent El Niño phenomenon continues to affect commodity markets.
In China, deteriorating crop quality and yield losses could boost demand for imports, including from the US.
Meanwhile, US crop conditions continued to worsen, with the USDA’s latest crop progress report showing only 37% of crops rated good to excellent, down from 38% previously.
India’s position in the Chinese yarn market has also strengthened, with its share of Chinese yarn imports rising to 21% from 7%, as shipments from the US and Brazil were delayed amid the Middle East conflict and tight fuel supply.
However, India is facing its weakest monsoon in nearly two decades, with rainfall expected to finish the season around 15% below the long-term average, posing further risks to cotton output.