The more active March 2026 cotton contract settled at 63.86 cents per pound, up 0.18 cents, after reaching an intraday high of 64.06 cents. March, May and July 2026 contracts posted their first higher close in seven sessions, rebounding from fresh lows earlier in the week. Other contracts closed from unchanged to 16 points higher.
Total ICE volume for the day was 38,105 contracts, compared with 40,884 contracts cleared in the previous session. ICE deliverable No. 2 certified stocks were unchanged at 13,971 bales.
Price action remained extremely narrow, marking the smallest intraday ranges seen in more than six weeks despite the USDA release.
USDA raised US ending stocks for 2025–26 to 4.5 million bales, up from 4.3 million in November, due to higher output. US cotton production was revised to 14.27 million bales from 14.12 million, driven by a yield increase from 919 lb per acre to 929 lb per acre. Yield forecasts were lifted mainly across Southeastern and Delta states. US cotton consumption was reduced to 1.6 million bales.
Global cotton production for 2025–26 was lowered to 119.79 million bales, compared with 120.08 million bales in November.
Analysts noted that the market showed little reaction despite higher ending stock estimates and suggested prices may continue to trade sideways.
Traders expect an 89 per cent probability of a 25-basis-point rate cut by the US Federal Reserve on Wednesday.
This morning (Indian Standard Time), ICE cotton for March 2026 traded at 63.98 cents per pound (up 0.12 cent), cash cotton at 61.86 cents (up 0.18 cent), the May 2026 contract at 65.05 cents (up 0.13 cent), the July 2026 contract at 66.03 cents (up 0.12 cent), the October 2026 contract at 66.67 cents (up 0.10 cent) and the December 2026 contract at 67.57 cents (up 0.04 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
ALCHEMPro News Desk (KUL)
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