Cotton prices tend to reach annual highs in spring as the uncertainty of the global crop and supplies leads to rallies. Cotton reached a record $2.1970 high in March 2011 and a lower $1.5595 per pound peak in May 2022. At below 70 cents per pound in May 2025, the potential for a 2025 cotton rally could be running out of time.
In my Q1 2025 Barchart recap of soft commodities, I mentioned that market participants should “Keep an eye on cotton, which is at a level that could eventually make the fluffy fiber an attractive candidate to take the bullish baton.” Nearby cotton futures were trading at 66.25 cents per pound in early Q2 after settling at 66.83 cents on March 31, 2025. The July contract was slightly lower in early May as cotton has not taken any bullish batons.
