Cotton Prices Surge Early Thursday as Futures See Heavy Buying

Cotton futures rallied sharply in early Thursday trading, with front-month contracts gaining between 166 and 246 points as buying pressure emerged in the morning session.

Market participants noted some profit-taking a day ahead of month-end after contracts had eased 8–65 points on Wednesday, but the overall tone returned to bullishness as new bids entered the market. May, July and December contracts drew particular attention as traders rebalanced positions ahead of roll and delivery windows.

Support for the move came from physical-market indicators: the Cotlook A Index rose to 89.35 cents/lb on April 28 and the Adjusted World Price jumped an additional 365 points to 65.26 cents/lb in afternoon trade. A firmer U.S. dollar index, quoted near 98.835, and rising crude oil prices added to commodity-market momentum and helped lift cotton futures.

On the supply side, ICE certified stocks were reported steady at 165,681 bales as of April 28, while The Seam showed limited offerings — about 139 bales at an average near $0.68 per pound — suggesting deliverable stocks remain relatively constrained. Those physical measures have amplified the sensitivity of futures to short-term demand and macro flows.

Analysts say the near-term outlook will hinge on macro drivers (dollar and oil), USDA and export-sale reports, and further spot-market data from Cotlook and The Seam. If physical-pricing indicators hold firm, the rally could extend; conversely, month-end profit-taking or softer export data would likely trigger pullbacks. Traders will watch Cotlook updates, ICE certified-stock reports and US crop progress data for clues to the next leg of the move.