ICE cotton futures retreated from a one-month high as profit booking and a stronger US dollar weighed on prices.
The December 2026 contract settled at 80.67 cents/lb, though it remained higher for the week.
Rising crude oil prices, weaker US crop ratings, and cautious positioning ahead of key USDA reports helped limit losses, supporting overall market sentiment.
Technically, December futures closed above the 10, 20, 40, 50, 100, and 200-day moving averages for the second consecutive session, the first time since March 10, indicating that the longer-term technical structure remains positive despite profit-taking. Market analysts said the market had rallied about 5 cents over the previous eight trading sessions, making profit-taking a natural development.
The US Dollar Index strengthened, climbing to a one-week high, which provided additional pressure on cotton prices by reducing the competitiveness of US exports.
CBOT soybean futures retreated from a seven-month high, as improving Midwest weather forecasts encouraged profit-taking across grain markets.
Despite the decline in soybeans, crude oil prices surged 4.4 per cent after renewed military exchanges near the Strait of Hormuz ended hopes for a ceasefire involving Iran, limiting losses in cotton by increasing the production cost of competing polyester fibre.
Market participants also continued to monitor reports of ongoing Chinese soybean purchases and rumours that China’s State Reserve may begin cotton reserve auctions later this month, both of which influenced overall market sentiment.
Traders remained cautious ahead of Friday’s USDA WASDE (World Agricultural Supply and Demand Estimates) Report, which is expected to provide updated global cotton supply and demand projections.
Market attention also remained focused on Thursday’s USDA Weekly Export Sales Report, which will provide the latest indication of export demand for US cotton. The latest USDA Crop Progress Report continued to show 46 per cent of the US cotton crop rated Good-to-Excellent, down from 48 per cent the previous week and 52 per cent a year earlier. The report also showed 49 per cent of the US cotton crop had reached the squaring stage, up from 37 per cent the previous week and slightly above the five-year average of 47 per cent.
Trading volume declined to 54,192 contracts from 88,745 contracts in the previous session, as buying activity slowed following Tuesday’s sharp rally. ICE certified cotton stocks declined by 95 bales to 184,939 bales, reflecting another small reduction in deliverable supplies.
The July 2026 cotton contract entered its last trading day with zero open interest, marking the completion of the delivery process for the expiring contract.
This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 79.80 cents per pound (down 0.87 cent), cash cotton at 74.98 cents (down 0.73 cent), the July 2026 contract at 76.21 cents (down 0.73 cent), the October 2026 at 78.80 cents (down 0.18 cent), the March 2027 contract at 81.26 cents (down 0.84 cent) and the May 2027 contract at 82.11 cents (down 0.88 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
