ICE cotton futures snapped a three-day rally, with the December 2026 contract settling 0.92 per cent lower at 77.12 cents/lb as weak US export sales outweighed support from a softer dollar.
Despite the fall, the contract gained 74 points for the week.
Analysts expect prices to remain range-bound between 75 and 80 cents amid sluggish demand and thin holiday trading.
December traded in a 100-point intraday range between 76.87 cents and 77.87 cents, remaining within the previous session’s range of 76.44 cents to 78.50 cents. The contract posted a weekly trading range of 76.17 cents to 78.50 cents, spanning 233 points.
Technically, December futures continued to hold above the 100-day moving average, extending the streak that has remained intact since February 18, although prices closed back below both the 10-day and 20-day moving averages after briefly moving above them on July 1 for the first time since June 23.
The USDA Weekly Export Sales Report for the week ended June 25 showed total net cotton export sales of 97,742 bales, including 93,118 bales of Upland and 4,624 bales of Pima cotton, representing the lowest weekly sales since the week ended July 10, 2025. The weak export report reflected continued slow cash market activity, and overshadowed the supportive impact of the weaker US dollar.
Market analysts said the disappointing export sales confirmed sluggish demand and expects cotton prices to remain range-bound between 75 cents and 80 cents per pound in the near term.
The US Dollar Index fell sharply following the June US employment report, which showed non-farm payrolls increased by only 57,000 jobs, well below the market expectation of 115,000 jobs, while the unemployment rate declined from 4.3 per cent to 4.2 per cent. The weaker employment data increased expectations for easier Federal Reserve policy, contributing to dollar weakness.
US financial markets will remain closed on Friday, July 3, in observance of the US Independence Day holiday, resulting in a shortened trading week.
Trading activity remained exceptionally light, with 29,623 contracts changing hands, making it the second-lightest trading session of 2026, compared with 29,040 contracts on Monday, the lightest session of the year.
The previous session’s cleared volume was 43,719 contracts, while the weekly average trading volume was only 35,038 contracts per day, highlighting subdued participation ahead of the US holiday weekend.
Fibre2Fashion News Desk (KUL)
