ICE cotton futures fell for a second straight session as profit-taking and lower crude oil prices outweighed weather concerns and export demand.
The December 2026 contract settled at 80.63 cents/lb.
Traders stayed cautious ahead of the USDA’s July WASDE report, while weaker US export sales and lower trading volumes added to market pressure.
Prices fell sharply during the first half of the session before recovering most of their losses by the close, reflecting continued buying interest at lower levels. Market analysts attributed the weakness primarily to profit-taking following the recent rally, noting that much of the weather premium had already been priced in. Despite the pullback, the market remained technically constructive after moving above the 40-day moving average, although traders were cautious about adding fresh long positions ahead of the USDA’s WASDE report.
Crude oil prices declined further, putting pressure on cotton by lowering polyester production costs and improving the competitiveness of synthetic fibres. Oil prices weakened as the market viewed the risk of significant Middle East supply disruptions as limited despite ongoing regional tensions.
Trading volume fell to 44,291 contracts from 54,192 in the previous session, reflecting cautious participation ahead of the USDA’s July World Agricultural Supply and Demand Estimates (WASDE) report.
The USDA’s Weekly Export Sales Report for the week ended July 2, showed net Upland cotton export sales of 66,400 bales, down 36 per cent from the previous week but 20 per cent above the four-week average. China purchased 3,294 bales of current-crop cotton, while next-crop sales reached 86,971 bales.
The US Climate Prediction Center continued to project a 97 per cent probability of La Niña developing by late 2026 or early 2027, heightening concerns over hotter and drier conditions across the southern US cotton belt that could affect the next crop.
CBOT corn, soybean, and wheat futures also declined as traders booked profits, ahead of the USDA’s supply and demand report.
Market participants remained cautious ahead of the USDA’s July WASDE report, which is expected to provide updated estimates for global cotton production, consumption, exports and ending stocks, and could set the next major direction for cotton prices.
This morning (Indian Standard Time), ICE cotton for December 2026 traded at 80.57 cents per pound (down 0.06 cent), cash cotton at 74.93 cents (down 0.05 cent), October 2026 at 78.93 cents (unchanged), March 2027 at 81.97 cents (unchanged), May 2027 at 82.71 cents (down 0.06 cent), and July 2027 at 82.28 cents (down 0.06 cent). A few contracts remained at their previous closing levels, with no trades recorded so far today.
Fibre2Fashion News Desk (KUL)
