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2026-05-26 21:47:35
[Texas Rains Ease Drought, Cotton Hits Six-Week Low; Weaker Dollar and Strong Crude Oil Limit Losses] ⑴ Intercontinental Exchange (ICE) cotton futures hit a six-week low on Tuesday as rains in key Texas growing regions eased drought concerns, but a weaker dollar and higher international oil prices limited further declines. ⑵ The July cotton contract touched its lowest level since mid-April during the session before recovering to a 0.6% gain at 77.92 cents per pound. A brokerage president stated that drought damage had been significantly mitigated, with ample rainfall over the past two weeks. ⑶ Chicago wheat futures fell for the fourth consecutive day as rains in the U.S. growing belt eased drought conditions, while traders prepared for the new season's supply in the Northern Hemisphere. ⑷ Another reason for the limited decline in the cotton market was the 0.2% drop in the dollar index, making dollar-denominated U.S. cotton cheaper for buyers holding other currencies; Brent crude oil rose more than 2%, increasing the production cost of petroleum-based alternatives like polyester. (5) The USDA's export sales report last week showed that net sales of highland cotton for the 2025/2026 marketing year were 131,800 bales, a significant increase from the previous week and 16% higher than the four-week average. (6) Data last week showed that ICE cotton speculators' net long positions decreased by 10,011 contracts to 69,314 contracts.
