📈 Market Summary: Last 24 Hours
U.S. cotton futures rose modestly on August 25, 2025, with October contracts closing at 66.43 cents/lb, up 0.54 cents from the previous day. December and March contracts also saw gains, reflecting cautious optimism amid tightening domestic supplies [1].
🌾 USDA Forecast & 7-Day Outlook
The USDA’s August 2025 WASDE report projects a tighter cotton supply for the 2025/26 season:
- Planted area: Down 8% to 9.3 million acres
- Harvested area: Down 15% due to Southwest drought
- Yield: Up 6% to 862 lbs/acre
- Production: Forecast at 13.2 million bales, down 1.4 million from July
- Exports: Reduced by 500,000 bales
- Ending stocks: Lowered to 3.6 million bales
- Average price: Raised to 64 cents/lb [2][3]
Global cotton production and trade are also expected to decline, with weaker demand in India, Bangladesh, and Turkey offsetting gains in China [2].
📊 Market Implications
With reduced U.S. output and global supply tightening, cotton prices may remain firm in the short term. However, weak international demand and competition from other crops could limit upside potential.
🔮 7-Day Outlook
- Price Trend: Mild bullish bias due to supply constraints
- Weather Impact: Southwest drought remains a key risk
- Market Watch: Export demand and mill use trends to guide price action
Sources:
- [1](https://www.cottonusa.org/reports) Cotton USA
- [2](https://www.cottongrower.com/market-analysis/cotton-highlights-from-august-2025-wasde-report/) Cotton Grower
- [3](https://ers.usda.gov/publications/pub-details?pubid=113129&cpid=email) USDA ERS
