The July 2026 contract settled at 71.26 cents per pound, down 2.13 cents or 3.08 per cent. The contract traded in a wide range between 73.86 cents and 71.08 cents per pound. The low of 71.08 cents marked the weakest intraday level since March 27, 2026. The December contract settled at 73.30 cents, down 2.31 cents.
ICE cotton futures fell nearly 3 per cent as weaker crude oil prices, bearish grain markets and speculative selling pressured sentiment.
July futures settled at 71.26 cents/lb, the lowest intraday level since March 27.
Strong Brazilian exports, improving US crop conditions and weak risk appetite added pressure.
Traders now await the USDA WASDE report for fresh market direction.
Traders noted continued liquidation in nearby contracts as buyers remained cautious amid weak macroeconomic sentiment. Selling pressure was visible across the cotton board, with new-crop contracts also following the weakness seen in old-crop months.
Analysts linked the sharp decline partly to weakness in agricultural commodities and energy markets. CBOT soybean futures ended lower as favourable weather conditions across major US Midwest growing regions improved crop prospects. Better rainfall and improving soil moisture conditions reduced concerns about soybean crop stress. July 2026 corn futures also ended slightly lower during the session. Weakness in corn and soybean markets added further bearish sentiment to cotton futures trading.
Crude oil prices dropped nearly 3 per cent, creating additional downside pressure on commodity markets, including cotton. Oil prices weakened after reports suggested that the United States and Iran were moving closer to a breakthrough in nuclear negotiations. The possibility of increased Iranian oil supply raised concerns about higher global crude availability, dragging energy prices lower.
Equity markets in the United States also weakened during trading hours. Major US stock indices, including the S&P 500 and Nasdaq, closed lower due to renewed weakness in technology shares. The poor performance of equities reduced overall risk appetite among commodity traders and speculative funds.
USDA data also showed cotton squaring activity progressing steadily across producing states. US cotton squaring was reported at 7 per cent, compared to 5 per cent during the same week last year. Crop development remains slightly ahead of the normal seasonal pace.
Brazil’s export agency Secex released updated cotton export data for June. Brazil exported 64,165.64 tonnes of cotton during the first week of June. Average daily cotton exports were reported at 16,041.41 tonnes per day. Brazil’s June export pace remains exceptionally strong compared with last year. Daily average exports are running 142 per cent higher than the same period a year ago. Last year’s comparable June daily export average was around 6,640.90 tonnes. Strong Brazilian exports continue to intensify competition in global cotton trade flows.
ICE certified cotton stocks continued to decline gradually. ICE data showed certified stocks at 257,511 bales as of June 8, compared with 261,648 bales the previous day, indicating a reduction in available exchange stocks. Falling certified stocks provided limited support but were unable to offset broader bearish pressure from outside markets.
Traders are now shifting focus to the upcoming USDA monthly WASDE supply-and-demand report scheduled for later this week. Market participants expect the report to provide updated estimates on US and global cotton production, exports and ending stocks.
Overall, market sentiment remained weak and defensive, with outside market influences dominating cotton price action.
This morning (Indian Standard Time), ICE cotton for July 2026 was trading at 71.32 cents per pound (up 0.06 cent), cash cotton at 67.26 cents (down 2.13 cents), the October 2026 contract at 73.23 cents (down 2.27 cents), the December 2026 contract at 75.54 cents (up 0.24 cent), the March 2027 contract at 76.83 cents (up 0.25 cent) and the May 2027 contract at 77.82 cents (up 0.26 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
