Cotton futures rebounded the past couple of sessions as the market continued its range-bound trade. May cotton traded about 70 points higher in the afternoon on Tuesday, topping 65.68 cents a pound before paring some gains. Recent losses were contained by the 64-cent level, keeping prices in a 3-cent range.

Demand continues to be the largest drag on the cotton market. Low prices have done little to drum up export business that would help the total pace recover.

A slower end to January and start to February put U.S. cotton exports well behind the USDA’s target pace. Sales and shipments over the next couple of months will be important for exports catching up to the needed pace. The USDA’s current target of 12 million bales is possible, but there is little wiggle room for lackluster demand.

The USDA left the U.S. cotton balance sheet unchanged in its March WASDE report on Tuesday. The 2025/26 carryout is forecast at 4.4 million bales. The stocks-to-use ratio is currently at 32 percent, the highest since the 2019/20 marketing year.

The agency raised global ending stocks to 76.4 million bales, up 1.3 million from the previous forecast. India and Brazil accounted for much of the increase. Brazil’s cotton production forecast was raised by 0.75 million bales to 19.5 million. The global stocks-to-use ratio was raised by one percentage point from last month to 64 percent.

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