ICE cotton futures rebounded after a two-day decline, with the December 2026 contract settling 0.68 cent higher at 81.55 cents per pound, supported by a weaker US dollar, stronger crude oil prices, and commodity markets.
Traders remained focused on West Texas weather, China’s reserve auction, and US export demand, while ICE-certified cotton stocks declined, indicating tighter deliverable supplies.
Cotton prices were supported by the weaker US dollar and strength across commodity markets, while traders continued to closely monitor weather conditions in key US cotton-producing regions. Despite the rebound, activity in the US cash market remained slow due to limited old-crop supplies, with most new-crop sales already committed.
Market analysts said the market remained quiet with no major cotton-specific news. They also noted that China’s state reserve auction, scheduled to begin on July 20, has had little impact on prices so far.
The US Dollar Index fell for a sixth consecutive session after the June Producer Price Index (PPI) showed inflation easing more than expected. The softer inflation data strengthened expectations of future US interest rate cuts, pushing the dollar to its lowest level since early June and improving the competitiveness of US cotton exports.
Trading volume totalled 42,900 contracts, compared with 47,826 contracts in the previous session. Although lower than recent averages, activity remained moderate by 2026 standards.
Crude oil prices strengthened after renewed attacks on commercial vessels in the Red Sea raised concerns over global shipping disruptions. Higher crude oil prices increased the production cost of polyester fibre, thereby improving cotton’s relative competitiveness.
Other agricultural markets also provided support. CBOT September wheat futures rose more than 3 per cent, while corn and soybean futures advanced on continued weather concerns across the US Midwest.
Weather remained the market’s primary focus. Recent forecasts have become less threatening, but West Texas has still not received sufficient rainfall. If favourable weather conditions continue through the remainder of the growing season, current yield potential could be maintained. However, weather remains the key risk for cotton production.
The latest USDA weather update indicated that hot and dry conditions persisted across parts of Texas and the southern Plains, while scattered showers elsewhere provided only limited relief and were insufficient to significantly improve soil moisture in some cotton-growing areas.
ICE-certified cotton stocks declined sharply to 100,612 bales as of July 14, down from 121,285 bales the previous day, a reduction of 20,673 bales. Over the past six reporting sessions, certified stocks have fallen by a total of 84,422 bales, highlighting the continued tightening of deliverable US cotton supplies.
Overall, cotton futures recovered as support from a weaker US dollar, firmer crude oil prices and ongoing weather concerns outweighed the lack of fresh cotton-specific news. Meanwhile, traders continue to monitor weather conditions in West Texas, China’s reserve auction, and the pace of US export demand.
This morning (Indian Standard Time), ICE December 2026 cotton was trading at 81.11 cents per pound (down 0.44 cent), while cash cotton was at 76.56 cents (up 0.21 cent). The October 2026 contract traded at 80.56 cents (up 0.96 cent), the March 2027 contract at 82.45 cents (down 0.48 cent), the May 2027 contract at 83.20 cents (down 0.46 cent), and the July 2027 contract at 82.58 cents (down 0.44 cent). A few contracts remained unchanged at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
