The July 2026 settled at 80.54 cents up 0.38 cent after recovering from early weakness.
ICE cotton futures extended gains as a weaker US dollar improved export competitiveness and weather concerns persisted across key producing regions.
Strong US export demand and tightening cotton availability in India also supported sentiment.
The July 2026 contract settled 0.38 cent higher at 80.54 cents per pound, while traders remained focused on crop conditions in the US and major producers.
Weakness in the US dollar increased competitiveness of US cotton exports by making American cotton cheaper for overseas importers. Analysts said currency movement provided fresh buying support after recent pressure in cotton futures.
India’s decision to suspend duty-free cotton imports from June has offered additional support to global cotton prices. The tariff-related changes and policy adjustments are increasing the relative cost of imported US cotton for Indian buyers. Indian textile industry sources reported that India’s duty-free import quota has already been fully exhausted nearly four months ahead of schedule.
The faster exhaustion of import quotas reflects tighter domestic supply conditions and strong mill demand within India.
Industry participants also pointed to adverse weather disruptions in producing regions, which have reduced available supplies and increased India’s dependence on imports. Market sources warned that global cotton supply may tighten further if crop conditions worsen in Australia, Brazil, the United States and African producing nations.
Vaisala Weather reported chances of scattered rainfall in parts of the southeastern US cotton belt, but drought conditions continue to persist across Texas. The US province remains a key focus area because prolonged dryness there can significantly impact US cotton production prospects.
USDA weekly crop progress report showed US cotton planting reached 66 per cent completion by June 1. Planting progress improved sharply from 53 per cent in the previous week and was slightly above last year’s 64 per cent level. However, the current planting pace remains just below the 5-year average of 67 per cent, indicating crop development is near normal but still weather dependent.
Export demand also remained supportive for prices as the USDA reported strong weekly US cotton export sales activity.
ICE exchange data showed certified cotton stocks increased to 242,991 bales as of June 1. Certified stocks were up from 237,993 bales recorded a day earlier, indicating a moderate rise in deliverable exchange inventories.
Overall market tone remained cautiously supportive due to weaker dollar trends, tightening import availability in India, weather risks in major producing regions and improving export demand signals.
This morning (Indian Standard Time), ICE cotton for July 2026 was traded at 76.99 cents per pound (down 0.05 cent), cash cotton at 74.04 cents (down 0.10 cent), the October 2026 contract at 79.54 cents (up 0.30 cent), the December 2026 at 80.39 cents (down 0.15 cent), the March 2027 contract at 81.51 cents (down 0.21 cent) and the May 2027 contract at 82.51 cents (unchanged). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
