The cotton market witnessed significant volatility during the month, driven largely by macroeconomic developments and geopolitical events. Both the NY July and December futures contracts trended higher through mid-month, with July reaching 87 cents and December surpassing 88 cents. However, the rally was short-lived, as both contracts reversed sharply and ended the month at approximately 76 cents and 79 cents respectively. Overall, the market experienced an exceptionally volatile trading range of nearly 11 cents during the month.
Cotton enters June with some supportive headlines following the launch of the Great American Cotton plan and India’s removal of its cotton import duty. However, macro developments, weather, and outside markets are likely to remain the primary drivers of price action this week.
*Markets are searching for direction this week following another volatile round of commodity liquidation and a sharp pullback across cotton futures in recent sessions.*
• U.S. markets were closed Monday, May 26, for Memorial Day, making this a shortened trading week, though macro headlines are still expected to remain firmly in control.
Market Movement from 18th May 2026 to 23rd May 2026.
• During the week, the market witnessed high volatility. On the first trading day, NY July cotton futures touched a high of 84.10 cents before entering a week-long downtrend, hitting a low of 76.84 cents. Ultimately, NY July closed with a weekly loss of 319 points W/W, while NY December closed with a loss of 258 points W/W. Spread between July to December stay 191 Points December to Premium July.