ICE cotton futures closed lower yesterday amid heavy rollover pressure and persistent tariff uncertainty. Broader agricultural markets also traded in the red due to tariff-related worries, which further weighed on the US cotton market.

The most actively traded May cotton contract dipped 0.49 cent to settle at 65.14 cents per pound, although it had hit its highest level since January 29 on Friday. Front-month contracts traded in the upper half of Friday’s range, retaining nearly two-thirds of the prior session’s gains despite the losses. The May 2026 contract had earlier posted strong gains of 149 points on Friday. The rest of the board ranged from 36 points lower to 2 points higher, excluding the near-month March contract. March 2026 (first notice day) settled 53 points higher at 6,356 points as deliveries began.

ICE cotton futures closed lower amid heavy rollover pressure and persistent tariff uncertainty, despite holding much of the previous session’s gains.
The May contract settled at 65.14 cents per pound, while trading volumes declined.
Broader agricultural markets weakened on US tariff concerns after US President Donald Trump raised global import tariffs to 15 per cent.

Total trading volume declined to 58,019 contracts, compared with 110,161 contracts on Friday. The average daily volume last week stood at 85,504 contracts, indicating continued active participation.

Market analysts said cotton is attempting to find a bottom amid rollover pressure and tariff uncertainty. US President Trump announced an increase in global import tariffs from 10 per cent to 15 per cent, heightening macro and trade risk sentiment.

Broader agricultural markets weakened, with soybeans under pressure as US tariff policy uncertainty hurt the export outlook. Cotton prices are near unprofitable farming levels but may still test the 63 cent per pound support level.

CFTC data for the week ended February 17 showed that speculators increased net short positions by 3,652 contracts to 75,430 contracts. ICE certified stocks remained unchanged at 119,457 bales as of February 20.

Brazil exported 218,691.66 tons of cotton in the first three weeks of February, averaging 16,822.44 tons per day, up 23 per cent year on year.

This morning (Indian Standard Time), ICE cotton for May 2026 traded at 65.78 cents per pound (up 0.64 cent), cash cotton at 63.14 cents (down 0.49 cent), the March 2026 contract at 63.56 cents (up 0.53 cent), the July 2026 contract at 67.37 cents (up 0.55 cent), the October 2026 contract at 68.39 cents (down 0.22 cent), and the December 2026 contract at 69.45 cents (up 0.41 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)

The gross domestic product (GDP) across the Organisation for Economic Co-operation and Development (OECD) countries edged down to 0.3 per cent quarter on quarter in the fourth quarter (Q4) of 2025 from 0.4 per cent in the preceding quarter, reflecting uneven momentum among the 24 member countries with available data, according to provisional estimates. Ten countries recorded stronger growth and two maintained stable performance, while seven experienced slower expansion and five reported contractions.

Within the G7 grouping, Germany and Italy posted improved growth of 0.3 per cent each, up from 0.0 per cent and 0.2 per cent respectively in Q3, supported by higher household and government consumption. Italy also benefited from increased investment activity. In contrast, France’s growth moderated to 0.2 per cent from 0.5 per cent as inventory drawdowns continued to weigh on output, OECD said in a press release.

Canada’s economy contracted by 0.1 per cent following 0.6 per cent growth in the previous quarter, while the United Kingdom recorded unchanged growth of 0.1 per cent. Japan returned to expansion with 0.1 per cent growth after a 0.7 per cent contraction in Q3, driven primarily by stronger investment.

OECD GDP growth eased to 0.3 per cent in Q4 2025 from 0.4 per cent as country performances diverged.
Germany and Italy strengthened, while France slowed and Canada contracted.
Japan returned to modest growth and the UK remained stable.
Lithuania led expansion among other members.
Annual OECD growth rose to 1.7 per cent in 2025, with Ireland recording the strongest performance.

Among other OECD economies, Lithuania led quarterly growth with a 1.7 per cent increase, followed by Israel and Poland at 1.0 per cent each. Conversely, Ireland and Korea reported declines of 0.6 per cent and 0.3 per cent respectively.

Annual estimates indicated that OECD GDP growth strengthened to 1.7 per cent in 2025, compared with 1.2 per cent in 2024 and 1.1 per cent in 2023. Growth performance diverged across countries, with half of the reporting economies experiencing acceleration and the remainder recording slower expansion.

Ireland posted the strongest annual growth at 12.6 per cent, while all OECD countries with available data registered positive growth in 2025, contrasting with the previous year when seven economies contracted.

Fibre2Fashion News Desk (SG)

Netherlands’ unemployment remained stable at 4 per cent in January 2026 despite a gradual rise in joblessness, according to newly released figures from Statistics Netherlands (CBS). The country recorded 415,000 unemployed persons during the month, with the number increasing by an average of 1,000 per month over the past three months, while the unemployment rate held steady across the previous four months.

The data showed a softening labour market backdrop as the number of people in paid employment declined by an average of 4,000 per month during the same three-month period. At the end of January, the Employee Insurance Agency (UWV) registered around 205,700 active unemployment benefits, reflecting continued upward momentum in benefit uptake, CBS said in a press release.

Beyond the unemployed population, approximately 3.2 million individuals were classified outside the labour force as they were not actively seeking work or immediately available. This group, comprising retirees and those unable to work due to illness or disability, expanded by an average of 6,000 per month over the past quarter.

Netherlands recorded 415,000 unemployed persons in January, keeping the jobless rate steady at 4 per cent despite a gradual rise in unemployment.
Paid employment declined slightly, while 205,700 active unemployment benefits were registered.
Seasonal factors and contract expiries contributed to higher benefit claims.
Labour market flows showed marginally more people entering unemployment than exiting.

UWV figures highlighted seasonal and structural influences on unemployment dynamics. A total of 38,700 new benefits were granted in January, while 24,400 were terminated. Compared with January 2025, the number of unemployment benefits increased by 8.6 per cent, equivalent to 16,200 additional recipients, continuing a monthly year-on-year (YoY) upward trend observed since August 2023.

Labour market flow data indicated that slightly more individuals entered unemployment than exited it. Around 148,000 unemployed people secured jobs in January, while 104,000 stopped seeking work and left the labour market. Conversely, unemployment rose as 121,000 employed persons lost their jobs and 135,000 previously inactive individuals began searching for work. As a result, 256,000 people were unemployed in January despite being in employment three months earlier.

Fibre2Fashion News Desk (SG)