# Cotton Futures Rebound on Stronger Energy Markets and Dollar Weakness

- URL: https://stocks.freetheai.org/news/cotton-futures-rebound-on-stronger-energy-markets-and-dollar-weakness-002cd2
- Published: 2026-10-19T12:35:51Z
- Category: commodities; sentiment: bullish; impact: medium
- Symbols: [ICEUS:CT1!](https://stocks.freetheai.org/symbols/ICEUS-CT1!)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Cotton No. 2 Futures (ICEUS:CT1!) traded higher on Monday morning, gaining 38 to 43 points across major contract months. The rebound follows a mixed session on Friday and a weekly decline of 54 points for the December contract. December 2026 cotton futures were up 38 points, while March 2027 and May 2027 contracts rose 43 and 40 points, respectively.

Market gains were aided by broader market tailwinds, including a $3.87-per-barrel increase in crude oil prices and a 0.255 drop in the U.S. dollar index. In addition, money managers expanded their net long holdings in cotton futures and options by 1,862 contracts to reach 65,699 contracts for the week ending October 13. However, demand data showed some softening, with weekly U.S. export sales slipping 11.12% to 146,892 running bales, led by purchases from Costa Rica, India, and Pakistan.

Traders will keep an eye on upcoming export performance and inventory levels. U.S. cotton shipments decreased 13.11% week-over-week to 140,561 running bales, though they remained slightly above year-ago levels. Meanwhile, certified exchange inventories fell by 2,627 bales to 15,129 bales, while the Adjusted World Price rose to 64.61 cents per pound.

## Key points

- Cotton No. 2 Futures gained 38 to 43 points across active contract months on Monday.
- Crude oil prices surged by $3.87 per barrel while the U.S. dollar index fell by 0.255 points.
- Managed money increased net long positions by 1,862 contracts to 65,699 contracts as of October 13.
- Weekly cotton export sales dropped 11.12% to 146,892 running bales, with Costa Rica as the top buyer.

## Questions and answers

### Why are cotton futures rising today?

Cotton futures are rising due to higher crude oil prices, a weaker U.S. dollar, and increased net long positions held by hedge funds and money managers.

### How much did weekly U.S. cotton export sales decline?

Weekly U.S. cotton export sales fell 11.12% from the prior week to 146,892 running bales, with Costa Rica being the largest buyer.