Cotton market struggles as export sales rise but shipments lag

The cotton market showed a glimmer of hope this week, with export sales reaching a marketing year high of 348,900 bales, primarily driven by demand from Vietnam, Pakistan, and Turkey. Despite this, export shipments fell short of the pace needed to meet USDA's annual export estimate of 11 million bales. Actual shipments so far total just 3.5 million bales, with six months left in the marketing year.

Prices hovered within a tight 67-69 cent range, with technical resistance at 69.25-69.50 cents and support at 66-67 cents. A sustained move above 70 cents would signal stronger demand, though current indicators, including poor yarn orders, suggest otherwise.

Meanwhile, the Better Cotton Initiative (BCI) continues to gain traction in the US, rewarding growers for sustainable and high-quality cotton production. Many producers have successfully leveraged BCI certification to earn premiums, promoting US cotton as one of the most efficient and sustainable globally.

While the market's outlook remains cautious, growers are encouraged to explore BCI certification to maximize returns. For prices to rise meaningfully, stronger demand and higher shipment volumes are essential. Until then, the market faces an uphill battle.