# Cotton Futures Slip Following Production and Ending Stock Increases

- URL: https://stocks.freetheai.org/news/cotton-futures-slip-following-production-and-ending-stock-increases-a3e001
- Published: 2026-10-12T12:36:09Z
- Category: commodities; sentiment: bearish; impact: medium
- Symbols: [ICEUS:CT1!](https://stocks.freetheai.org/symbols/ICEUS-CT1!)
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Cotton futures turned lower on Monday morning, giving back a portion of the sharp gains registered late last week. Futures contracts fell between 25 and 45 points in early trading, following a Friday session where prices had advanced by 53 to 79 points. December futures had surged 166 points on Friday before retreating 45 points on Monday.

The market pullback comes as updated agricultural projections point to expanding domestic supplies. Forecasts raised average US cotton yields by 14 pounds to 790 pounds per acre, adding 240,000 bales to bring total production to 13.44 million bales. Consequently, projected US ending stocks rose by 200,000 bales to 3.8 million bales. Recent ginning figures showed 487,900 running bales processed in the final two weeks of September, reaching a marketing year cumulative total of 917,150 running bales.

Investors will be watching how speculative positions and cash market demand evolve alongside ongoing harvesting. Institutional fund managers reduced their net long positions by 10,756 contracts during the week ending October 6, leaving net holdings at 63,837 contracts. Meanwhile, cash market trading stayed quiet, with online transactions recording just 91 bales sold on October 8.

## Key points

- Cotton futures slid 25 to 45 points on Monday morning after rallying between 53 and 79 points on Friday.
- US cotton production estimates rose by 240,000 bales to 13.44 million bales as yield projections increased.
- Domestic ending stock projections increased by 200,000 bales to reach 3.8 million bales.
- Managed money investors trimmed their net long stance by 10,756 contracts to 63,837 contracts.

## Questions and answers

### Why did cotton prices drop on Monday morning?

Cotton prices fell on Monday as higher production forecasts and increased US ending stock estimates put pressure on futures following Friday gains.

### How much cotton production is expected in the US?

US cotton production is projected at 13.44 million bales, boosted by a 14-pound increase in yield per acre to 790 pounds.

### How are institutional investors positioning in cotton?

Managed money investors reduced their net long positions by 10,756 contracts in the week ending October 6, bringing their total net position to 63,837 contracts.