U.S. cotton futures are beginning to carve out a trading range near contract lows. March cotton traded 26 points lower to 64.01 cents a pound on Monday. Prices rejected a move above resistance levels late last week and early this week after rising as high as 64.81 last Friday. Futures are establishing a range between 63 and 65 cents.

Speculators have been exiting short positions since mid-October but have also been adding new long positions along the way. Money managers were net buyers of 8,235 cotton contracts during the week ending Dec. 23, according to the CFTC’s Commitment of Traders report. The agency caught up on its reporting this week after the government shutdown delayed data.

Large commercial selling has capped gains over the past month, holding bearish pressure over the market. The cotton market’s inability to rally has been linked to limited demand for U.S. supplies and global competition.

Producers heavily reduced planted acreage last year, but the declining exports have continued to leave producers with lower prices. Cotton futures on a continuous basis fell about 6 percent in 2025.

The USDA announced the payment rates for crops eligible for relief under the Farm Bridge Assistance program. Eligible cotton producers will receive up to $117.35 per acre by Feb. 28.

Brazilian farmers began planting cotton in Mato Grosso last month. Progress reached nearly 1 percent complete, which was behind last year’s pace and the five-year average.

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