ICE cotton futures closed higher on a technical rebound, supported by crop concerns in India, though gains were capped by falling crude oil prices and slightly higher US cotton acreage.
The December 2026 contract settled at 76.80 cents per pound, while improved US crop ratings and weaker energy prices continued to influence market sentiment.
The market drew support after the US Department of Agriculture’s (USDA) Planted Acreage Report estimated US cotton planted area for 2026 at 9.85 million acres, slightly above both market expectations and the March Prospective Plantings estimate. USDA reported Upland cotton acreage at 9.70 million acres and Pima cotton acreage at 150,000 acres, compared with 9.141 million acres and 141,500 acres, respectively, in 2025.
Total US cotton acreage increased by 567,500 acres year on year, including an additional 559,000 acres of Upland cotton and 8,500 acres of Pima cotton. The acreage exceeded the March Prospective Plantings estimate of 9.64 million acres and the Bloomberg survey average of 9.60 million acres, although it remained within the expected market range of 9.10-10.40 million acres.
Market analysts said the acreage report had largely been priced in beforehand, describing it as broadly in line with expectations and, if anything, slightly lower than anticipated.
Cotton prices also faced pressure from weakness in the energy market. July crude oil prices fell 3.51 per cent, marking their largest monthly decline since the COVID-19-driven market collapse in 2020.
Although cotton witnessed a technical rebound during the session, the sharp decline in crude oil continued to limit further gains because lower oil prices enhance polyester’s price competitiveness. Weather concerns also persisted in India, where one of the driest Junes in several years and delayed monsoon rainfall slowed the planting of cotton, rice, corn, and soybean crops.
USDA’s weekly Crop Progress report showed that 53 per cent of the US cotton crop was rated good to excellent, up from 48 per cent the previous week and 51 per cent a year earlier. Cotton squaring reached 97 per cent, compared with 92 per cent a week ago, 95 per cent a year earlier, and matching the five-year average of 97 per cent.
Trading volume improved to 37,771 contracts from 29,040 contracts in the previous session, which had marked the lightest trading volume since December 15. However, it remained well below the June daily average of 70,743 contracts, the May average of 78,753 contracts, and the 2026 year-to-date average of 78,890 contracts.
This morning, during Indian Standard Time (IST) trading, ICE December 2026 cotton was quoted at 77.34 cents per pound, up 0.54 cent. Cash cotton traded at 70.99 cents, up 0.22 cent; the July 2026 contract was at 72.22 cents, up 0.22 cent; the October 2026 contract edged up 0.01 cent to 75.00 cents; the March 2027 contract rose 0.55 cent to 78.69 cents; and the May 2027 contract gained 0.53 cent to 79.66 cents per pound. Several other contracts remained unchanged, with no trading recorded in those contracts so far today.
Fibre2Fashion News Desk (KUL)
