September 08, 2025 — 03:21 pm EDT

Cotton futures are showing modest gains of 4 to 7 points as trading begins on Monday morning. This follows a softer performance on Friday, when contracts declined by 13 to 30 points. The December contract experienced a 51-point drop over the course of last week. External market factors presented a mixed picture, with the US dollar index falling $0.624 to $97.680, while crude oil futures retreated by $1.51.

As of September 2, speculative funds had further expanded their substantial net short position in cotton futures and options, increasing it by 6,438 contracts to reach a total of 66,369 contracts.

The latest USDA Export Sales report revealed cotton sales of 244,971 running bales for the week ending August 28. This figure represents a 36.6% increase from the previous week and an 81.21% jump compared to the same period last year. Vietnam emerged as the top buyer, securing 109,700 running bales, followed by India with 53,800 running bales, and China with 35,200 running bales. Actual shipments reached a four-week high of 154,651 running bales, with Vietnam receiving the lion's share at 82,800 running bales, while 17,500 running bales were destined for Pakistan.

In other market news, The Seam reported a modest transaction of 135 bales on Thursday, averaging 62.85 cents per pound. The Cotlook A Index remained steady at 77.50 cents on September 4. ICE certified cotton stocks held firm on September 4, maintaining a level of 15,474 bales. USDA's Adjusted World Price (AWP) continued its downward trend, decreasing by another 63 points on Thursday to 54.31 cents per pound.

Current cotton futures prices stand as follows:

| Contract | Previous Close | Current Change |
|----------|----------------|----------------|
| Oct 25 | 64.39 | +36 points |
| Dec 25 | 66.03 | +4 points |
| Mar 26 | 67.96 | +7 points |

It's important to note that commodity trading carries inherent risks, and past performance does not guarantee future results. Traders and investors should conduct thorough research and consider their risk tolerance before making any investment decisions.

The information provided in this article is for educational purposes only and should not be construed as financial advice. Market conditions can change rapidly, and it's crucial to stay informed about the latest developments in the cotton market and related economic factors.