Cotton Futures Midday: Up 140-155 Points as Dollar Softens & Oil Rises

Cotton futures climbed sharply midday on Friday, with front-month contracts trading roughly 140–155 points higher as traders reacted to a softer dollar and firmer energy markets.

The U.S. dollar index eased to about 97.805, reducing the dollar-denominated cost of cotton for overseas buyers and supporting buying interest. Market participants also noted USDA’s weekly export commitments at roughly 10.41 million running bales (RB), a key metric for assessing actual overseas demand versus seasonal expectations.

Oil markets provided additional backing: U.S. West Texas Intermediate crude traded near $95.84 a barrel midday, and the rise in crude has a secondary effect by lifting prices of polyester feedstocks, making cotton relatively more attractive to some buyers. The combined effect of a weaker dollar and firmer oil helped underpin the commodity’s midday gains.

Broader market context includes planting and stock projections, as well as competition from other exporters. USDA supply-demand notes and weekly export reporting remain central to price discovery; changes to U.S. production estimates or an acceleration in shipments to major importers would likely amplify price moves. Traders are also watching grain markets and macro headlines that influence currency and energy flows.

Analysts say near-term outlook depends on a mix of fundamental and macro drivers: continued dollar weakness and sustained oil strength would favor further cotton gains, while weaker global economic indicators or softer buying from top consumers could cap upside. Risk-aware participants are focusing on position sizing and using export sales and inventory updates as primary inputs for trading or hedging decisions.