Cotton futures are trading at key levels again this week after a failed test of resistance two weeks ago. March cotton futures, which took over as the most active contract, traded moderately lower on Tuesday to about 65.60 cents a pound. 

Prices are again testing their April 4 low of 65.56 cents a pound. Futures had accelerated losses below the level on Friday but quickly reversed those losses to begin this week. Major support remains at 64.45. A successful test of that level could encourage technical buying. 

The USDA will release the WASDE report on Friday. Not much is expected to change on the demand side, though we might get some production revisions. The Senate passed its budget bill in a 60-40 vote, with the bill headed to the House before hitting the president’s desk. The potential of the government reopening this week could get us back on track with tracking export demand again. 

Reuters reported that India could import about 4.5 million bales of cotton during the 2025/26 season. That would be a 10 percent increase from the previous season and a record. Domestic production is expected to hit a 17-year low, spurring the need for overseas imports. 

India’s imports had already reached a record the previous season, driven by shipments from the U.S. Brazil, Australia, and Africa. India had already been increasing cotton imports from the U.S. over the past year. U.S. exporters could still face stiff competition from Brazil and Australia.

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