The July 2026 settled at 73.30 cents per pound, down 0.30 cent. The contract traded between 72.92 cents and 74.47 cents per pound. December contract settled at 77.61 cents, up 0.13 cent. Other contracts settled between 0.12 cents lower to 0.12 cents. Most contracts reported slight losses while December showed relative stability.
ICE cotton futures remained under pressure as rising certified stocks and speculative liquidation weighed on sentiment.
July futures slipped to 73.30 cents/lb, while December posted slight gains.
Trading volume exceeded 106,000 contracts, reflecting heavy fund unwinding.
Improved US crop conditions and ample certified stocks kept the outlook bearish, especially for nearby contracts.
Over the last 19 sessions since May 11 highs, July recorded 13 down closes with total decline of 1,438 pts, while December recorded 11 down closes with cumulative fall of 979 pts, indicating steady liquidation rather than panic selling.
Trading activity remained extremely heavy with total volume at 106,245 contracts, highest since May 15 volume of 131,417 contracts, and marked the 23rd session in 2026 with daily volume above 100,000 contracts. Friday cleared volume stood at 98,465 contracts versus previous week average of 82,618 contracts/day, confirming aggressive fund liquidation and long unwinding across commodities.
ICE certified stocks continued building above 250,000 bales, highest level in nearly 9 years, while ICE No.2 certified inventory reportedly rose to around 261,648 bales as of June 5, compared with 250,429 bales earlier.
Market participants remain divided whether rising certified stocks alone are driving July weakness, though additional delivery pressure ahead of First Notice Day on June 24, remains a key bearish factor with only about 10 trading sessions left.
Outside markets gave mixed signals as crude oil posted modest gains due to military tensions around the Strait of Hormuz and concerns over shipping disruptions, creating fears of tighter energy supplies and higher inflation.
Major macroeconomic events this week include US CPI inflation data on Wednesday and US PPI data on Thursday, which are expected to influence Fed policy expectations, dollar movement and overall cotton market direction.
USDA crop progress report released after market close showed US cotton planting at 77 per cent complete, exactly matching the 5-year average of 77 per cent, indicating normal planting pace with no major delays.
US cotton squaring reached 13 per cent versus 11 per cent 5-year average, showing crop development running 2 percentage points ahead of normal pace, while improved rainfall across Texas and Southwest reduced immediate weather concerns and removed part of the weather premium from prices.
Overall market tone remains bearish for nearby July futures due to rising certified stocks, speculative liquidation, stronger dollar, high-interest rate expectations and improved US crop outlook, while December futures continue showing relatively better resilience as market focus shifts toward new-crop fundamentals and future weather developments.
This morning (Indian Standard Time), ICE cotton for July 2026 was traded at 73.40 cents per pound (up 0.01 cent), cash cotton at 70.39 cents (down 0.36 cent), the October 2026 contract at 75.25 cents (down 0.25 cent), the December 2026 at 77.39 cents (down 0.22 cent), the March 2027 contract at 78.66 cents (down 0.21 cent) and the May 2027 contract at 79.78 cents (down 0.04 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
