ICE cotton futures fell to a multi-week low, with the December 2026 contract dropping 2.76 per cent to 79.30 cents per pound after weak US export sales triggered profit booking.
A stronger US dollar and broad commodity market weakness added pressure, while traders continued to monitor China’s reserve auction, US weather, and tightening ICE-certified cotton stocks.
Traders cited disappointing export demand, a lack of fresh bullish cotton news, and broad-based weakness across commodity markets. The market also continued to monitor the upcoming China state cotton reserve auction, although it had little immediate influence on prices.
Market analysts said the market had been expecting a weaker export report, describing sales as “a little disappointing, but not a disaster.” The market is beginning to focus more on the new crop rather than old-crop business.
The USDA Weekly Export Sales Report for the week ended July 9 showed net Upland cotton sales of 34,360 bales, the lowest weekly total of the marketing year. Next-crop Upland export sales totalled 4,075 bales.
The US June Retail Sales Report exceeded expectations, with sales rising 0.2 per cent month on month after a 0.9 per cent decline in May, while economists had expected no change. Excluding automobiles, retail sales increased 0.5 per cent, suggesting US consumer spending remained resilient despite economic uncertainty.
Despite the stronger economic data, US Treasury yields rose and expectations for Federal Reserve interest rate cuts were reduced, contributing to a firmer US dollar and weighing on commodity prices.
Other agricultural markets also weakened. CBOT wheat futures closed sharply lower, while corn and soybean futures also declined as traders booked profits and concerns over US crop conditions eased.
The US Dollar Index strengthened for a fourth consecutive session, reaching its highest level in nearly one month and adding further pressure to US agricultural exports by reducing their international price competitiveness.
ICE-certified cotton stocks declined further to 99,836 bales as of July 15, compared with 100,612 bales previously, continuing the steady reduction in deliverable cotton supplies.
Overall, the market experienced a broad risk-off session, with weak export demand outweighing supportive supply fundamentals. Traders will now closely monitor China’s reserve auction, US weather conditions, and whether export demand improves enough to stabilise prices above the key 79-80 cents support area.
This morning (Indian Standard Time), ICE cotton for December 2026 traded at 78.38 cents per pound (down 0.92 cent), cash cotton at 73.69 cents (down 2.87 cents), the October 2026 contract at 76.82 cents (down 0.87 cent), the March 2027 contract at 79.87 cents (down 0.83 cent), the May 2027 contract at 80.69 cents (down 0.88 cent), and the July 2027 contract at 80.47 cents (down 0.77 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
