ICE cotton futures rose for a third straight session, led by front-month demand and supported by firm crude oil, stronger agri commodities and India weather risks.
December 2026 settled at 81.11 cents.
Gains were driven largely by external markets, while light volumes signalled short covering.
Strong China reserve sales and a weaker US dollar added support.
Market analysts said cotton’s strength was driven primarily by outside markets, noting that corn reached new highs, soybeans strengthened, and crude oil continued to rally, while cotton itself had little fresh fundamental news.
CBOT (Chicago Board of Trade) wheat futures extended their rally for a third consecutive session, supported by concerns over Black Sea export supplies and lower production estimates for North Dakota. Corn and soybean futures also advanced as hot and dry weather threatened crop development across parts of the US Midwest.
Crude oil prices rose for a third straight day, supported by continuing geopolitical tensions involving the United States and Iran and renewed security concerns over Red Sea shipping routes. Higher crude prices increase the production cost of polyester fibre, improving cotton’s competitiveness relative to synthetic fibres.
The US dollar weakened for a third consecutive session, making US cotton more competitive in export markets and providing additional support to prices.
Trading volume totalled 29,987 contracts, compared with 28,096 contracts in the previous session. Although slightly higher, it remained the fourth-lightest trading session of 2026, indicating that the rally continues to be driven largely by short covering and existing long positions rather than aggressive new buying.
China’s third state cotton reserve auction again recorded 100 per cent sales, with 8,013 tonnes sold. Over the first three auction days, a total of 24,064 tonnes were sold, with approximately 85 per cent consisting of imported US and Brazilian cotton and 15 per cent Xinjiang cotton. The continued sell-outs indicate steady mill demand and remain supportive for global cotton consumption.
The largest weather risk for the global cotton market currently lies in India, where the country is experiencing its driest June in decades. Continued monsoon irregularities could delay crop development and reduce production potential, providing underlying support to world cotton prices.
Despite the improving technical picture, light trading volume remains the key cautionary signal. Traders will be watching whether futures volume can recover above 35,000 contracts to confirm stronger buying interest, while the 81.50–81.80 cents area remains the next important resistance zone after the recent recovery.
This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 81.10 cents per pound (down 0.01 cent), cash cotton at 76.12 cents (up 0.91 cent), the October 2026 contract at 79.75 cents (down 0.12 cent), the March 2027 contract at 82.46 cents (up 0.01 cent), the May 2027 contract at 83.34 cents (up 0.01 cent), and the July 2027 contract at 82.87 cents (unchanged). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
