Cotton Holds Near Two-Month Low

Cotton futures fell below 81 cents per pound but remained near a two-month low amid prospects of rising global supply. The latest WASDE report raised its global production forecast for the August 2026—July 2027 season to 25.8 million tonnes from 25.66 million previously, driven by higher projections for the US (2.93 million vs. 2.88 million tonnes) and Brazil (4.15 million vs. 4.03 million tonnes). Export competition is also expected to intensify, with Brazil’s export forecast raised to 3.48 million tonnes from 3.38 million. Shipments from Brazil between July and September of 2026 increased 18% from a year earlier to 453 thousand tonnes. Meanwhile, US exports have declined in recent weeks, though forecasts remain unchanged at 2.69 million tonnes between August 2026 and July 2027. Adding to the bearish pressure, 23% of the US crop has been harvested, above the historical average of 21%. However, a hurricane threatening cotton crops in Alabama and the Delta could pose risks to supply.