Wed, Feb 18,
Insights
ICE cotton futures eased as a stronger US dollar and weak sentiment across agri-commodities pressured prices, with the May contract settling at 63.64 cents per pound.
Markets await the delayed USDA export sales report for demand cues.
Rising ICE stocks and higher net short positions reflect a cautious outlook, keeping cotton largely range-bound amid fragile global conditions.
ICE cotton futures declined yesterday as negative external factors pressured broader agriculture commodity markets, including US cotton. Higher US dollar also weighed on US cotton as it made cotton purchase more expensive for overseas buyers. The market is waiting for US export sales report due on Friday.
The most actively traded May cotton contract dipped 0.49 cent to settle at 63.64 cents per pound. The May contract earlier touched its lowest level since February 9.
The US dollar edged higher against major currencies as US-Iran nuclear talks raised geopolitical uncertainty. Market analysts said that negative external factors were pressuring commodities, with agri-markets broadly lower. The overall market tone remains weak.
In grains, Chicago wheat and soybean futures declined for a second straight session from multi-month highs. Ample global wheat supply weighed on prices, while the Chinese New Year holiday dampened soybean demand sentiment.
In the given scenario, cotton is likely to remain range-bound unless there is clear improvement in demand fundamentals. Traders await the USDA weekly export sales report, due on Friday, delayed by Presidents’ Day. Cotton typically performs better during periods of economic stability, which is currently lacking.
US equity markets closed slightly higher, with technology and financial stocks recovering from early losses.
CFTC data for week ending February 10 indicated that speculators increased net short positions by 8,194 contracts to 71,777; ICE deliverable stocks for February 13 rose to 110,014 bales from 106,040 bales.
This morning (Indian Standard Time), ICE cotton for May 2026 was traded at 63.65 cents per pound (up 0.01 cent), cash cotton at 61.64 cents (down 1.49 cent), the March 2026 contract at 61.52 cents (unchanged), the July 2026 contract at 65.42 cents (up 0.05 cent), the October 2026 contract at 67.28 cents (down 0.33 cent) and the December 2026 at 68.09 cents (up 0.04 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.