Fashion
ICE cotton edges higher on stable demand, lower production outlook
The most actively traded March cotton contract rose 0.50 cents, or 0.78 per cent, to settle at 64.91 cents per pound, marking its second-highest close of the past month. The December-27 contract ended one point lower, while all other contract months gained between two and 59 points.
ICE cotton futures strengthened after the USDA’s World Agricultural Supply and Demand Estimates (WASDE) cut US and global stocks while keeping demand steady.
A weaker dollar lifted commodity markets, helping cotton hold gains.
March contracts traded near monthly highs, though traders remain cautious as export demand and global consumption trends still lack strong visibility.
Total trading volume reached 72,016 contracts, including 53,794 contracts carried over from Friday. Average daily volume last week was 66,350 contracts, reflecting solid market participation.
The USDA kept US beginning stocks, consumption, exports and imports unchanged, but cut US cotton production by 350,000 bales to 13.92 million bales and reduced US ending stocks by 300,000 bales to 4.2 million bales.
World ending stocks fell by 1.49 million bales, with India’s ending stocks down by 1.2 million bales and Australia’s by 200,000 bales, while China’s ending stocks increased by 500,000 bales.
Market analysts described the report as “friendly”, noting that the 350,000-bale production cut was about double what had been expected and that it was also a surprise that the US export forecast was not reduced. Despite the supportive USDA data, the cotton market continued to show mixed signals, with prices struggling to build strong upward momentum.
The US dollar fell sharply after reports that the US Department of Justice had issued a grand jury subpoena on January 9 and opened a criminal investigation into Federal Reserve Chairman Jerome Powell over the Federal Reserve headquarters renovation project. As the dollar weakened, commodity markets surged across the board, with gold breaking through a record $4,600 per ounce, NYMEX crude oil climbing to a more than five-week high, and Brent crude closing at a near eight-week high on worries over a possible decline in Iranian exports. Broad-based strength in commodities helped cotton hold on to, and extend, its gains.
This morning, in Indian Standard Time, ICE cotton for March 2026 was settled at 65.10 cents per pound, up 0.19 cent. Cash cotton stood at 62.66 cents, up 0.50 cent, the May 2026 contract at 66.60 cents, up 0.16 cent, the July 2026 contract at 68.01 cents, up 0.15 cent, the October 2026 contract at 68.43 cents, down 0.59 cent, and the December 2026 contract at 69.33 cents, up 0.06 cent. A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)