Welcome to this week's edition of the Cotton Market Update, covering key developments in the cotton industry from January 17 to January 23, 2026. This newsletter focuses primarily on U.S. cotton news (about 75% of content), with a quarter dedicated to international updates. We've curated the most relevant stories to keep you informed on market trends, export dynamics, production challenges, and global shifts.
U.S. Cotton Prices Experience Volatility Amid Export Highs
Cotton futures showed mixed movements this week, with prices slipping to a 4-week low before posting midday gains on strong export data. On January 23, cotton fell to 63.83 USd/Lbs, down 0.08% daily, reflecting a 0.64% monthly decline and 5.69% yearly drop. However, midday gains of 6 to 10 points were driven by USDA reports of marketing year highs in export business, with crude oil futures supporting sentiment at $61.18 per barrel.
- Market Closures: Futures closed steady to 7 points lower in front months on Friday, with March down 85 points for the week. Weakness extended into Friday morning, with prices down 18 to 21 points after Thursday's 38 to 41 point drops.
- Weekly Review: Spot quotations averaged 81 points lower than the prior week, per USDA's Agricultural Marketing Service. Daily volume remained steady, while open interest climbed to record levels, up 16,009 contracts to 336,693; certificated stocks fell 481 bales to 11,029. Weekly Cotton Market Review
- Positive Notes: The week ended on a brighter note, settling 126 points higher at 68.68 cents basis December 2025 ICE contract. Strong sales failed to spark a major rally, but back-to-back export highs may provide near-term support amid drought concerns.
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USDA Export Sales Hit Marketing Year Highs for Upland Cotton
Upland cotton achieved a new marketing year high in export sales for the second consecutive week, boosted by demand from Vietnam. This aligns with highs in corn, sorghum, and soybeans, signaling robust agricultural export momentum.
- Export Details: USDA data highlighted strong cotton shipments, contributing to overall agricultural gains, including beef, pork, rice, and soybean meal. Export sales report
- Acreage Projections: Producers anticipate planting more acres in response to demand, though overall cotton acres are expected to sink to a 10-year low in 2025. Global ending stocks are forecast to rise, per USDA's 2025/26 projections.
- NCC Response: The National Cotton Council commended the administration for bridge assistance payments announced on December 31, 2025, aiding growers amid challenges. NCC news releases
U.S. Production and Sustainability Updates
Farmers in the Wiregrass region gathered at the Cotton Expo in Dothan to address rising costs and market uncertainty, seeking innovative solutions for the season. Meanwhile, twenty Mid-South and Southeast producers visited the San Joaquin Valley to observe advanced cotton and agricultural practices.
- Variety Evaluations: The University of Georgia released the final 2025 on-farm cotton variety results on January 21, ahead of the 2026 Georgia Cotton Commission Annual Meeting and UGA Production Workshop. UGA Cotton News
- Sustainability Milestones: 1888 Mills set benchmarks in fiber choice, receiving Champion status for commitment to cotton. Cotton Incorporated provided the latest updates on sustainability, farming practices, and innovations. Cotton Today News
- Regional Insights: Explore ongoing commentary from Farm Progress on cotton developments. Cotton recent news
International Cotton News Highlights
Global cotton prices hit a 4-week low at 63.62 USd/Lbs, down 0.75% over four weeks and 20.98% annually, influenced by supply dynamics. In trade news, Indian cotton textile exporters pushed for duty-free EU access in ongoing India-EU FTA negotiations to boost competitiveness. India-EU trade details
- Asia Developments: Afghanistan's Ministry of Industry and Commerce discussed cotton exports to Bangladesh during a visit to BKMEA factories. Both sides explored expanding sustainable trade, with Bangladesh interested in Afghanistan's high-quality cotton for long-term relations. Cotton remains a key agricultural export for Afghanistan, supporting the economy and jobs. Afghanistan cotton news
- Sustainability Projects: Better Cotton Initiative (BCI) and Planboo launched a biochar pilot on Indian cotton farms to tackle pest pressure and enhance sustainability. BCI latest news
- Global Market Trends: Lectra revealed five key trends shaping textiles, including cotton's role. Fibre2Fashion covered the latest market updates. Textile industry news
Closing Thoughts on Prices and Outlook
This week saw cotton navigating lows and export highs, with the U.S. focus on acreage declines and sustainability gains. Internationally, trade talks and projects signal growth opportunities. Traders eye continued volatility from global supply and demand. For more, check Cotton QuickTake for market updates.
