*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.
Markets will look for more clarity this week after disappointing Trump-Xi meetings and heavy liquidation across commodities late last week.
• Outside markets will remain a major driver for cotton this week. Firmer inflation data, higher Treasury yields, and a stronger U.S. dollar pressured risk appetite late last week, while crude oil continues to find support and remains important for the broader commodity space and polyester economics.