Fashion
ICE cotton slips on weaker crude, profit booking
The most traded May 2026 contract settled at 67.18 cents per pound, down 0.13 cent. May contract has recorded cumulative loss of 159 points in the last four sessions.
ICE cotton futures declined as softer crude oil prices and profit booking weighed on the market.
The May 2026 contract settled at 67.18 cents/lb, extending recent losses.
Easing geopolitical tensions reduced polyester costs, while weak sentiment and lower trading volumes added pressure, though stable stocks and outlook limited the downside.
Total trading volume reported at 68,955 contracts, significantly lower than previous week’s average of 106,740 contracts.
The decline in crude oil prices, triggered by easing geopolitical tensions, weighed on cotton through its linkage with polyester prices. Comments by Donald Trump on ongoing US–Iran negotiations—despite Iran’s denial—along with reports of a five-day delay in planned US strikes on Iran’s energy facilities, eased fears of supply disruptions and pressured crude prices.
This development led to a sharp plunge in oil prices, which had been supported earlier due to Middle East tensions. Iran’s denial of talks helped limit further fall in crude oil, thereby capping downside in cotton and grains.
Market sentiment turned weak as prices slipped below recent highs, reflecting profit booking and external pressure.
Market analysts said that Trump’s statements supported equity markets and indirectly stabilised cotton sentiment.
According to BMI Research outlook, US cotton prices expected to average 68–70 cents per pound, supported by competitiveness against synthetic fibres and weaker 2026-27 crop outlook.
According to CFTC data, speculators added 37,050 contracts, shifting from net short to net long position of 3,561 contracts.
ICE deliverable stock (No.2 cotton) remained unchanged at 115,640 bales as of March 20, indicating stable supply availability
This morning (Indian Standard Time), ICE cotton for May 2026 was traded at 66.74 cents per pound (down 0.44 cent), cash cotton at 65.18 cents (down 0.13 cents), the July 2026 contract at 68.91 cents (down 0.40 cent), the October 2026 contract at 71.31 cents (down 0.13 cent), the December 2026 at 71.44 cents (down 0.40 cent) and the March 2027 contract at 72.51 cents (down 0.43 cent)). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)