Cotton futures sold off for a second day on Thursday, pushing prices back to support levels. December cotton traded about 0.60 cents lower to 66.60 cents a pound. The current level has served as support throughout the summer, though better support is around 66 cents.

Prices had risen to a two-week high earlier this week, though farmers selling physical bales likely added pressure as the week went on. To reiterate from Tuesday, harvest pressure could limit gains as more supplies come online over the next month. 

The USDA’s export sales report on Thursday showed sales rebounded last week to 205,100 metric tons (MT), compared to 129,000 MT the previous week. Volumes were well above the same week last year but more on par with the five-year average. China was absent again on the sales sheet after two weeks of light purchases. 

Total sales commitments and exports remained 20 percent below year-ago levels and are at the slowest pace since 2015. The recent break in the U.S. dollar is supportive for exports, but the lack of buying interest from China could mute exports. 

Conab released its Brazilian crop production estimates this morning for the 2025/26 season. The agency forecasts cotton acreage to increase by 3.5 percent, driven by higher acreage in Bahia, Piaui, Minas Gerais, and the Tocantins. Total production is expected to increase 0.7 percent to a record 4.09 million metric tons. 

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.