Cotton Falls as Harvest Advances
Cotton futures fell below 78 cents per pound, reaching its lowest level in four months as rising harvest supplies weighed on prices. The US harvest continues to advance, with 63% of the crop harvested by the week ended October 25, above the five-year average of 54%. Peak harvest typically adds seasonal pressure as new supplies enter the market. Competition from Brazil, the world’s leading cotton exporter, is also intensifying, with Anea forecasting shipments of around 3.4 million tonnes, compared with the USDA’s US export forecast of 2.69 million tonnes. Meanwhile, progress in US-China trade talks has yet to deliver meaningful tariff relief, prompting Chinese buyers to scale back foreign purchases. In addition, an accelerating negative feedback from downstream textile demand in China, the world's largest producer of textiles, acts as a marginal driver, where the expected seasonal recovery in September and October failed to materialise.
Cotton futures fell below 78 cents per pound, reaching its lowest level in four months as rising harvest supplies weighed on prices. The US harvest continues to advance, with 63% of the crop harvested by the week ended October 25, above the five-year average of 54%. Peak harvest typically adds seasonal pressure as new supplies enter the market. Competition from Brazil, the world’s leading cotton exporter, is also intensifying, with Anea forecasting shipments of around 3.4 million tonnes, compared with the USDA’s US export forecast of 2.69 million tonnes.
Meanwhile, progress in US-China trade talks has yet to deliver meaningful tariff relief, prompting Chinese buyers to scale back foreign purchases. In addition, an accelerating negative feedback from downstream textile demand in China, the world's largest producer of textiles, acts as a marginal driver, where the expected seasonal recovery in September and October failed to materialise.