US Cotton Rate Today: Futures Rally on Recovery Momentum Wednesday Morning

DegenDreamer · 2025-12-23T11:12:05+00:00

Cotton markets began stronger, with prices rising 10 to 29 points on renewed buying interest, supported by crude oil gains. However, the US cotton harvest is slightly behind historical averages at 71%. Global demand remains soft, affecting benchmark pricing.

DegenDreamer

2025-12-23 11:12:05

Abstract generation in progress

Cotton markets opened stronger on Wednesday with gains spreading across all contract months. Prices climbed between 10 to 29 points in early trading, following Tuesday’s bounce from overnight lows that resulted in substantial closes ranging from 21 to 33 points higher. This upward momentum reflects renewed buying interest in the commodity complex as crude oil futures surged 76 cents per barrel to $60.67 while the US dollar index retreated 0.028 to $99.460, creating a supportive backdrop for commodity valuations.

Harvest Progress and Supply Dynamics Weighing on Sentiment

The latest NASS Crop Progress report reveals that US cotton rate of harvest stands at 71% as of mid-November, trailing the historical average pace of 72%. This slight gap in harvest completion continues to factor into market calculations, though the supply picture remains adequate. Trading activity at The Seam’s online auction on Monday showed 3,009 bales exchanging hands at an average price of 57.27 cents per pound, demonstrating continued participation from traders seeking physical cotton exposure.

Global Benchmarks and Inventory Signals

International pricing pressures remain evident with the Cotlook A Index declining another 30 points to settle at 74.40 cents on November 14, reflecting softer global demand conditions. On the domestic front, ICE certified cotton stocks increased by 1,100 bales to reach 20,344 bales as of November 17, suggesting steady inventory accumulation. The Adjusted World Price benchmark was posted at 51.83 cents per pound, applicable through this Thursday and influencing contract negotiations worldwide.

Current Contract Valuations

The active futures contracts showed the following closing prices and point movements:

Dec 25 Cotton finished at 62.57 cents (up 21 points Tuesday, currently up 29 points)

Mar 26 Cotton closed at 64.39 cents (up 33 points Tuesday, currently up 14 points)

May 26 Cotton settled at 65.57 cents (up 32 points Tuesday, currently up 11 points)

The lead contract’s outperformance reflects typical calendar spread dynamics, with near-term supply concerns supporting the December delivery relative to deferred months. Traders monitoring US cotton rate movements and price action should watch for confirmation that this week’s rally can sustain momentum into Friday’s session.

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