ICE cotton slips on rollover pressure, tariff worries

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)