Cotton Market Update: Prices Decline Following Geopolitical News
Trading Session Summary
Cotton futures closed the Monday session with most contracts settling between 4 to 13 points lower. Specific contract performance included:
- May 26: Closed at 67.18, down 13 points.
- Jul 26: Closed at 69.31, down 2 points.
- Dec 26: Closed at 71.84, down 12 points.
Geopolitical Context and Market Impact
Early Monday morning, President Trump issued a Truth Social post ordering the military to postpone strikes against Iranian power plants and energy infrastructure for five days after weekend talks were described as “good and productive.” Iran state media responded stating there was no direct contact with the US.
This geopolitical development coincided with broader commodity movements; crude oil fell $9.36 on the day, while the US dollar index was down $0.549 to $98.910.
Cotton Fundamentals and Inventory Data
Sales data from The Seam showed 417 bales sold on March 20, averaging 62.42 cents/lb. The Cotlook A Index was down 110 points on March 20 at 78.25 cents. ICE certified cotton stocks were unchanged on Friday, with the certified stocks level at 115,640 bales. Additionally, the Adjusted World Price was raised by 2.72 cents to 54.22 cents/lb on Thursday.
Context: Broader Commodity Implications
The market activity reflects interconnected risks between energy infrastructure and agricultural inputs. Related analysis explores what connects the US war on Iran, fuel, fertilizer, and food prices. While favorable Brazil crop outlooks weighed on coffee prices and cocoa prices fell on expectations of a bumper West African crop, cotton traders monitored inventory levels alongside these external factors.
Takeaway
Cotton futures declined on Monday as geopolitical de-escalation signals and stable stock levels contributed to lower closing prices across the contract curve.
Original source
Published: Mar 23, 2026
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