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This is your Cotton podcast.
Hello and welcome back to Daily Cotton Price Tracker, I'm your host Vanessa Clark, and today we're diving into what's happening in the cotton market as we head into the final stretch of April.
Cotton futures are trading around 80 cents per pound right now, which is the highest we've seen since May of 2024. That's a significant milestone for the market, and there are some really interesting factors driving this rally.
The main story here is that elevated oil prices are playing a huge role in supporting cotton prices. When crude oil costs go up, it becomes more expensive to produce polyester, and that makes cotton look like a much more attractive alternative fiber for manufacturers. It's a fascinating dynamic where energy markets directly impact what we're seeing in cotton trading.
We're also looking at some supply-side concerns that are keeping prices elevated. There's persistent drought risk across key US growing regions, particularly in West Texas. That said, conditions have improved in the Delta and Southeast, so it's not all doom and gloom on the domestic front.
But here's where things get interesting on the demand side. Export sales have been softening. The latest USDA weekly export sales report showed net sales of Upland cotton totaling 119,900 running bales for the 2025-26 season, which is down 26 percent from the previous week and 55 percent below the four-week average. That's a pretty significant drop in demand momentum.
So we've got this interesting tension in the market right now between supply concerns that are supporting prices and weakening demand signals that are creating some headwinds. The cotton market is essentially consolidating as traders weigh these competing factors.
The geopolitical landscape is also playing a role here, with ongoing Middle East disruptions and stalled US-Iran peace talks keeping energy markets elevated and therefore supporting cotton as an alternative to synthetic fibers.
If you're following cotton for trading, investing, or just general market interest, this is definitely a time to keep your eyes on both energy prices and export sales data. Those two factors are really going to dictate where we head from here.
Thanks so much for tuning in to Daily Cotton Price Tracker. Be sure to subscribe and join us next time for the latest cotton market updates. I'm Vanessa Clark, and we'll catch you tomorrow.
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