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This is your Daily Cotton Price Tracker with Vanessa Clark podcast.
Hey everyone, welcome back to the Daily Cotton Price Tracker. I'm Vanessa Clark, and boy do we have some exciting movement in the cotton markets to talk about today.
Let's dive right in. Cotton just hit a 46 week high, reaching 70.42 cents per pound. That's the highest we've seen since May of 2025. May cotton futures specifically rose 73 points today to hit 70.19 cents, which represents a fresh 5.5 month high. This kind of rally is exactly what traders have been watching for, and there's some really interesting stuff driving these price moves.
So what's pushing cotton higher? First, we're seeing some solid technical buying in the market. But beyond the charts, crude oil prices have been climbing significantly, and that's directly supporting cotton prices. Higher oil means higher fertilizer costs and more expensive polyester, which is a competing product. So cotton becomes relatively more attractive to buyers when those alternatives get pricier.
Now let's talk about the real story here. The US cotton growing region is dealing with serious drought conditions, especially in Texas and western areas. According to the US Drought Monitor, an area representing 91 percent of US cotton production was affected by drought as of March 24th. That's up significantly from just 36 percent a year ago. This supply concern is a major factor supporting prices right now.
We're also looking ahead to the USDA Prospective Plantings report, which comes out tomorrow. Analysts are expecting cotton acreage to drop to around 9.229 million acres, which would be down from 9.283 million acres last year. If farmers plant less cotton due to rising production costs, that could mean tighter supplies down the road.
Here's something to keep on your radar. Global demand for cotton remains strong, particularly from the Middle East and Southeast Asia. However, geopolitical tensions are driving up production costs, which could impact planting decisions going forward.
Looking at the broader picture, May cotton is up 74 points, July cotton is up 74 points to 72.44 cents, and December cotton is up 66 points to 74.68 cents. These consistent gains across multiple contract months show real strength in the market.
For traders and those watching cotton prices, the key takeaway is that we're in an uptrend supported by both technical momentum and fundamental supply concerns. Keep an eye on that USDA report tomorrow and any weather updates for the cotton belt.
Thanks so much for tuning in to the Daily Cotton Price Tracker. Be sure to subscribe and join us tomorrow when we break down how that USDA report impacts prices. We'll catch you next time.
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