ICE cotton futures rose for a third straight session, with the December 2026 contract settling at 77.84 cents, supported by gains in Chicago grain markets.
However, larger-than-expected US cotton acreage and weaker crude oil prices limited the rally.
Traders now await the US Department of Agriculture’s weekly export sales report for fresh demand signals.
The rally was supported by strong gains in Chicago grain futures. Market analysts said the sharp advance in Chicago corn futures provided additional support to cotton prices, adding that cotton could test the 80-cent level again in the near term.
Chicago corn and wheat futures extended their previous session’s rebound, while soybean futures also finished higher, contributing to the positive tone across agricultural markets.
Market participants shifted their attention to the USDA Weekly Export Sales Report, scheduled for release later in the week, as it is expected to provide the next indication of global demand for US cotton.
Traders continued to assess the USDA Planted Acreage Report, which estimated 2026 US cotton planted area at 9.85 million acres, compared with the average analyst expectation of 9.636 million acres, indicating planted area was slightly above trade estimates. The larger-than-expected planted acreage continued to limit bullish enthusiasm despite the recent recovery in futures.
In the energy market, US crude oil futures declined about 1 per cent, falling to its lowest level in nearly one month, which capped gains in cotton because lower crude oil prices improve the competitiveness of polyester fibre. The decline in crude oil followed improved optimism that US-China trade negotiations were progressing smoothly, easing concerns over global economic growth and energy supplies.
In the broader financial markets, all three major US stock indices closed lower, reflecting a cautious start to the second half of 2026, although the weaker performance in equities had only a limited impact on cotton trading.
Overall, cotton futures extended their recovery for a third straight session, supported by strength in grains and technical buying, while traders remained cautious ahead of the USDA’s weekly export sales data and continued to monitor the impact of larger US planted acreage and lower crude oil prices.
This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 77.28 cents per pound (down 0.56 cent), cash cotton at 72.05 cents (up 1.06 cent), the July 2026 contract at 73.28 cents (up 1.06 cent), the October 2026 contract at 76.05 cents (up 1.06 cent), the March 2027 contract at 78.76 cents (down 0.43 cent) and the May 2027 contract at 79.73 cents (down 0.45 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
