ICE cotton futures rose for a fifth straight session, with the December 2026 contract settling 0.90 cent higher at 80.88 cents per pound as a weaker US dollar, technical buying and strong Chinese reserve purchases supported prices.
Tight certified stocks also aided sentiment, while traders now await the US Federal Reserve, weather and export demand for further direction.
The session recorded a lower higher and lower low than Friday but finished near the day’s high, a notable improvement after Friday’s weak close near the lows.
Market analysts said last week’s sell-off had found support and the market was now testing nearby resistance levels.
Trading activity moderated after Friday’s heavy spread-related session, with volume easing to 38,785 contracts from 58,368 on Friday, but remaining close to last week’s average, suggesting orderly market participation rather than panic-driven selling.
China’s state reserve auction continued to underpin sentiment, recording its sixth consecutive full sell-out. Around 8,022 tonnes were sold on Monday, taking cumulative sales over six sessions to 48,131 tonnes. US cotton accounted for 56 per cent of purchases, followed by Brazil and Xinjiang at 22 per cent each. Continued buying of US cotton at roughly twice the pace of other origins reinforced expectations of tightening deliverable supplies.
The USDA’s weekly Crop Progress report showed bolls opening reached 46 per cent for the week ended July 26, compared with 45 per cent a week earlier, but below 55 per cent reported a year ago and the five-year average. Bolls setting advanced to 81 per cent from 73 per cent, while squaring improved to 45 per cent from 32 per cent.
StoneX estimated Brazil’s 2026-27 cotton crop at 3.83 million tonnes, about 1.5 per cent lower than the previous season. Although planted area is expected to increase, dry weather in Mato Grosso is likely to weigh on yields.
Market fundamentals remained supportive as ICE certified stocks stayed tight and Chinese reserve buying continued to strengthen nearby supply expectations.
Market participants will closely watch the US Federal Reserve meeting, weather conditions in West Texas, China’s reserve auctions and US export demand for further direction this week. Export demand remains the key constraint despite the recent recovery.
This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 80.53 cents per pound (down 0.35 cent), cash cotton at 75.59 cents (up 0.79 cent), the October 2026 contract at 78.80 cents (down 0.54 cent), the March 2027 contract at 82.10 cents (down 0.37 cent), the May 2027 contract at 83.44 cents (down 0.25 cent), and the July 2027 contract at 83.05 cents (down 0.52 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
