SoftSignal Research  /  Markets  /  Cotton

A fiber caught between West Texas weather and the oil price.

Cotton is the only major ag contract whose demand curve is set by a petrochemical. Supply lives or dies on High Plains rainfall; demand competes with polyester, which is priced off crude. One market, two entirely different sets of fundamentals — and a positioning book that regularly bets on only one of them.

Explore the Demo → Current cotton signal →
Market covered
CT ICE US — Cotton No. 2, 50,000 lb, New York
Supply geography
US Texas High Plains · Delta · Southeast — Drought Monitor coverage
World USDA FAS PSD balance sheet — production, trade, stocks-to-use
Demand anchor
CL WTI crude as the polyester-competitiveness proxy

6
Data layers — positioning, world balance sheet, drought, crop progress, on-call sales, crude proxy
2
Demand regimes tracked — natural fiber vs. oil-priced polyester substitution
Weekly
Full report after each Friday CFTC release, with drought refresh Thursday
D0–D4
Drought-severity coverage for the High Plains and Southeast cotton belt

The market that is agricultural on one side and industrial on the other

Every other row crop we cover is eaten. Cotton is worn — and that changes everything about how it trades. On the supply side it behaves like a classic weather market: dryland acres on the Texas High Plains produce, or fail to produce, on the strength of a few spring rains, and abandonment can erase a meaningful share of planted area before a single boll opens. The question every summer is not how much was planted, but how much will be harvested.

On the demand side, cotton competes with polyester for share of the world's fiber consumption — and polyester is priced off crude oil. When crude falls, synthetic fiber gets cheaper and mills blend away from cotton; when crude rallies, cotton gains competitiveness without a single bale changing hands. How much of a cotton rally is cotton, and how much is oil?

Then there is the market's own peculiar mechanism: on-call sales. Mills that buy cotton "on call" leave the futures price unfixed — and the running CFTC tally of those unfixed positions is effectively a ledger of forced future buying or selling. When unfixed mill commitments pile up against a rising market, who blinks first? The COT report says who is positioned; the on-call report hints at who is obligated.


Four layers, one read

Every SoftSignal market is covered the same way: who holds the positions, what the balance sheet says, what conditions on the ground are doing, and what the demand backdrop implies. For cotton, each layer looks like this.

PositioningWho holds the risk
CFTC disaggregated COT for Cotton No. 2 — managed money and commercial net positions percentile-ranked against history, week-over-week flow, and open interest — plus on-call sales: the net unfixed commercial positions that represent obligated future fixations.
Supply & demandThe balance sheet
USDA FAS PSD world production, consumption, trade, and stocks-to-use by country, US ending stocks, and the monthly WASDE cotton table with revision tracking — the same visual treatment as our grain balance sheets.
Ground conditionsWhat the crop is experiencing
US Drought Monitor D0–D4 coverage for the High Plains and Southeast cotton belt — the abandonment question, quantified weekly — and USDA NASS cotton crop progress and condition ratings through the season.
Demand backdropThe fiber-substitution economics
WTI crude as the proxy for polyester competitiveness — the cost floor of cotton's synthetic rival — read alongside cotton's own price to separate fiber-demand moves from oil-complex moves.

What matters, when

Cotton's supply question is decided early: spring moisture on the High Plains sets the abandonment stakes before summer even starts. By harvest, the argument has usually moved from the field to the balance sheet.

US Cotton Belt
Planting
Apr – Jun
Squaring & bloom
Jun – Aug
Boll opening
Aug – Oct
Harvest
Sep – Dec
Abandonment risk
Spring moisture window
The reporting year
Prospective Plantings
Mar
Acreage report
Jun
WASDE balance sheet
Monthly, ~10th – 12th

Approximate windows for the US belt as a whole; West Texas dryland timing differs from the Delta and Southeast, which is why the report reads drought coverage by region rather than as a single national number.


The weekly rhythm

Monday
USDA crop progress & conditions in season, 4:00pm ET
Tuesday
COT report date — positions as of today's close, published Friday
Wednesday
Price and crude-proxy series refresh through the week
Thursday
US Drought Monitor released 8:30am ET
On-call sales tally updates on the CFTC weekly cycle
Friday
CFTC COT released 3:30pm ET
Cotton Market Intelligence publishes on the new data

On the monthly clock: the WASDE cotton balance sheet lands around the 10th–12th with a same-day visual supplement. March Prospective Plantings and June Acreage reset the acreage math twice a year.


Where cotton shows up

Weekly report · Subscribers
Cotton Market Intelligence

The core read: COT percentiles, on-call sales, world stocks-to-use, cotton-belt drought coverage, crop progress, and the crude-oil demand proxy in one weekly document.

See it in the demo →
Supplement · Free
WASDE Grain & Cotton Report

Cotton's world and US balance sheet visualized the day of each monthly WASDE release — ending stocks, stocks-to-use back to 2007, and revision tracking.

See it in the demo →
Cross-market · Subscribers
The Positioning Report — Softs

Cotton No. 2 positioning in cross-market context — read against sugar, coffee, and cocoa to see whether a move is cotton-specific or a softs-wide flow.

See it in the demo →
Free · Weekly signal
Cotton Signal Page

The public one-page read: managed-money regime, week-over-week change, and drought stress — updated after every CFTC release, with an RSS feed.

Current cotton signal →

Cotton research notes

Read this week's cotton data

The full report — positioning percentiles, on-call sales, drought coverage, and the WASDE cotton supplement — is in the open demo. No email, no card.

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