Friday's Price Action
U.S. cotton futures closed lower across the board on Friday, with front-month contracts losing between 79 and 103 points. The December 2026 contract, which finished the session at 81.15 cents per pound, was the most affected, posting a weekly decline of 491 points. The October 2026 contract ended at 77.38, down 103 points, while the March 2027 contract closed at 83.79, down 102 points.
Broader market conditions offered little support for the soft fiber. Crude oil retreated by $2.38 per barrel during the session, and the U.S. Dollar Index edged down by $0.040, suggesting a mixed macro backdrop for commodity markets heading into the weekend.
Positioning and Export Commitments
Commitment of Traders data from the CFTC revealed that managed money funds reduced their net long position by 2,267 contracts during the week ending September 15, bringing their aggregate net long to 97,903 contracts. The trimming of long bets underscores a cautious stance among institutional traders ahead of the weekend.
On the trade side, this week's USDA export sales report showed 4.5 million running bales of cotton export commitments as of September 10. That figure sits 13% above the five-year average, yet it represents only 39% of the USDA's full-year export forecast, lagging behind the 48% average seasonal pace at this point in the marketing year.
Key Indicators and Inventory Levels
The Cotlook A index fell 25 points on September 17, settling at 94.35. Meanwhile, the Adjusted World Price dropped 59 points on Thursday to 68.92 cents per pound.
ICE-certified cotton stocks held steady on September 17 at 36,617 bales, indicating that warehouse inventories have not been a source of additional downward pressure on prices this week.
