ICE cotton futures extended gains for a fourth straight session, supported by stronger crude oil prices and broader strength in agricultural commodities.
However, weak US export sales, a firmer US dollar and light trading capped gains.
Traders continue to monitor weather, export demand, Brazil’s larger crop outlook and China’s reserve auctions.
Cotton continued to draw support from higher crude oil prices and strength across agricultural commodity markets. CBOT wheat futures climbed to fresh highs, supported by concerns over Black Sea exports and dry weather in key producing regions, while corn and soybean futures also advanced.
Crude oil traded above $100 per barrel, reaching its highest level in several months amid persistent geopolitical tensions and concerns over potential supply disruptions in the Middle East. Higher crude oil prices increase the production cost of polyester fibre, thereby improving cotton’s competitiveness against synthetic fibres.
Market analysts said the strength in grain and energy markets continued to support cotton prices, adding that weather-related concerns remain an important underlying factor across agricultural commodities.
Trading volumes remained light, indicating cautious buying interest despite the fourth consecutive daily gain, as traders awaited stronger confirmation of demand.
The USDA Weekly Export Sales Report for the week ended July 16 continued to weigh on market sentiment. Current-crop Upland cotton export sales totalled 51,287 bales, down 49 per cent from the previous week and 12 per cent below the four-week average. The total included 15,475 bales sold to China.
Traders also remained focused on global production prospects. China’s reserve auctions continued to support nearby demand, while market attention stayed on weather-related production risks in major exporting countries.
AgRural estimated Brazil’s 2025-26 cotton crop at approximately 4.20 million tonnes, around 1.5 per cent higher than its previous estimate, reflecting expectations of another large harvest. Brazil has already exported more than 2.06 million tonnes of cotton this season and continues to increase shipments, reinforcing its position as one of the world’s leading cotton exporters and a major competitor to US cotton in global markets.
ICE certified cotton stocks declined further to 94,235 bales as of July 22, continuing the steady reduction in deliverable supplies.
Overall, cotton recorded a fourth consecutive daily gain, supported by strength in crude oil and agricultural commodity markets. However, weak export sales and light trading activity continued to limit bullish momentum. Traders remain focused on weather developments, export demand, and global supply conditions for cues on the market’s next direction.
This morning (Indian Standard Time), the December 2026 ICE cotton contract traded at 81.38 cents per pound, up 0.17 cent. The cash cotton contract was at 76.09 cents, down 0.03 cent, while the October 2026 contract traded at 79.84 cents, also down 0.03 cent. The March 2027 contract rose 0.15 cent to 82.98 cents, the May 2027 contract gained 0.07 cent to 84.05 cents, and the July 2027 contract edged down 0.02 cent to 83.59 cents. A few contracts remained unchanged, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
