Cotton futures climbed to 89.30 cents per pound on August 20, the highest level since April 2024, per Trading Economics. The move marks a fourth straight week of gains for the commodity.
Key Facts
- Cotton's August 20 close of 89.30 cents per pound was its highest since April 2024.
- Prices are up 10.97% over the past four weeks and 35.58% over the past year.
- USDA rated 38% of the US cotton crop good to excellent, down from 40% the week before.
Cotton traded at 86.77 cents on August 19 and below 80 cents in early August. It climbed to 89.30 cents by August 20, per Trading Economics, the highest close in over two years.
US Cotton Crop Conditions Fall to 38% Good-to-Excellent
USDA's National Agricultural Statistics Service rated 38% of the US cotton crop good to excellent for the week ending August 16. The reading is down from 40% the previous week and 46% two weeks earlier.
The current level trails both last year's 55% mark and the 46% five-year average for this week, according to NASS's Crop Progress report.
The Brock Report's own read of the USDA data confirms the decline.
Much of the decline has been concentrated in the Southwest. Texas, Oklahoma, and Kansas have all seen conditions worsen as hot, dry weather continues to stress the crop, per The Brock Report.
Four Straight Weeks of Gains for Cotton Futures
Cotton has now risen for four consecutive weeks, according to Trading Economics. The advance stands at 10.97% over that span and 35.58% over the past year, as of the August 20 reading.
Each weekly step down in the USDA's crop rating has lined up with a fresh high for the futures price. The pattern has held since late July.
Brazil and India Add to the Global Supply Picture
Trading Economics also flagged two supply-side factors.
Brazil's cotton exports jumped 19% in July, and a strengthening El Niño pattern is expected to persist through September.
In India, cotton planting rebounded once July delivered normal rainfall after a dry June. Trading Economics said rain in August and September would determine the size of the final crop.
Trading Economics also noted the four-week run has left the market exposed to a pullback, as traders may look to cash in on the recent gains.
