ICE cotton futures rose over 1.5 per cent, supported by US weather concerns and a rally in CBOT grain markets, marking the fourth gain in five sessions.
Limited rainfall in US cotton areas and delayed crop development in India underpinned sentiment, while USDA lowered the US cotton crop’s good-to-excellent rating.
Trading volumes remained light despite the price rally.
The main driver behind the advance was short-term weather concerns in the US, combined with sharp gains in CBOT grain futures, while cotton-specific news remained limited.
Market analysts said cotton prices were supported by weather concerns and strength in CBOT grains. Scattered rainfall occurred across parts of the southern US over the weekend, but totals were generally light and insufficient to significantly improve soil moisture. Last week, a strong heat dome developed across the US Midwest, producing record-high temperatures and increasing concerns that prolonged hot and dry weather could stress crops.
The Indian monsoon continues to advance, although crop development remains behind normal because earlier rainfall was insufficient. India experienced one of its driest Junes since 1901, with rainfall around 11 per cent below normal, delaying the planting of cotton and other summer crops.
The latest USDA Crop Progress Report showed that 46 per cent of the US cotton crop was rated Good-to-Excellent, down from 48 per cent the previous week and 52 per cent a year ago. Cotton squaring reached 49 per cent, compared with 37 per cent last week, 47 per cent a year ago, and the five-year average of 47 per cent. Cotton setting bolls reached 14 per cent, compared with 9 per cent the previous week, 13 per cent a year ago, and matching the five-year average of 14 per cent.
CBOT grain markets posted strong gains, with soybeans up 3.9 per cent, corn up 3.7 per cent, and wheat up 2.4 per cent, as traders reacted to Midwest heat and improving export demand.
International crude oil traded near a two-week low after OPEC+ approved another production increase for August, while expectations of higher exports from Kazakhstan and Iraq also pressured prices.
Trading volume totalled 36,901 contracts, improving from 29,623 contracts on Thursday but remaining light compared with most sessions in 2026. The average daily volume last week was 35,038 contracts, the lightest weekly average of the year.
In the July delivery process, it was the eighth notice day, with 56 delivery notices issued, matching the 56 contracts of remaining open interest. The July contract did not trade but remains available through Thursday. Total delivery notices now stand at 617 contracts, all of which could be original notices. ICE-certified cotton stocks remained unchanged at 185,034 bales, holding at the same level since June 26.
Broader financial markets remained supportive, with the Dow Jones Industrial Average reaching new all-time intraday and closing highs, while the S&P 500 and Nasdaq Composite also advanced but remained below their June 2 record closing levels, reflecting a broad risk-on sentiment as investors returned after the US holiday weekend.
This morning (Indian Standard Time), ICE cotton for December 2026 traded at 79.05 cents per pound (up 0.75 cent), cash cotton at 72.72 cents (up 1.38 cents), the July 2026 contract at 73.95 cents (up 1.38 cents), the October 2026 contract at 77.92 cents (up 1.20 cents), the March 2027 contract at 80.52 cents (up 0.80 cent), and the May 2027 contract at 81.38 cents (up 0.74 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
