Cotton Falls to One-Week Low

Cotton futures fell to around 82 cents per pound, its lowest level in little over a week, as traders assess whether demand can keep pace with the expected rise in new-crop availability. As the seasonal harvest progresses, additional supply is weighing on prices, particularly in Arizona, where 39% of the crop had been harvested, and Texas, up to 23%, in the week ending September 20th. Additionally, while high temperatures and lack of precipitation, particularly in Texas, increasing stress on crops, its conditions continue to worsen, with only 34% of crops rated good or excelent on the same week. Bearish sentiment was reinforced by weak export demand, as USDA's latest export sales report showed shipments declined to 71.2 thousand running bales for the week ended September 10th. Meanwhile, Brazilian output for 2025/26 is estimated to reach a record 4.5 million tons of lint, according to Agroconsult, while exports of Brazilian cotton surged 37.3% year-on-year in August.