ICE cotton rebounds after six-session slide on US data optimism

ICE March 2026 cotton futures settled at 64.39 cents per pound, up 0.33 cents. The contract had earlier lost 171 points over the previous five sessions. Despite the rise, near-month ICE cotton contracts still made new intraday lows. Other contracts closed higher by between 4 and 32 points.

A mildly weaker US dollar made dollar-priced cotton slightly more attractive for overseas buyers.

The move was viewed as a relief bounce ahead of Friday’s first-notice day for the December contract. Market sentiment lifted slightly as traders repositioned before the delivery period and awaited delayed US government data.

Total volume reached 67,329 contracts versus 66,768 the previous day, with December accounting for almost 25 per cent due to heavy liquidation. ICE deliverable No.2 certified stocks rose to 20,344 bales on November 17, up from 19,244 bales the day before, indicating continued warehouse inflows.

Market analysts said December CFDs were very active and that the resumption of data releases was offering some relief to the market, even without fundamentally bullish signals.

Last week’s US government reopening ended the longest shutdown in US history, allowing key reports to resume and restoring some clarity for traders.

USDA’s weekly crop progress showed the US cotton harvest at 71 per cent, compared with 76 per cent last year and a five-year average of 72 per cent. The slower harvest pace kept some focus on field conditions but did not significantly alter overall supply expectations.

US equities continued easing from recent all-time highs, marking the most noticeable pullback since the strong rally that began in April.

Overall sentiment improved slightly with the rebound, but traders remained cautious as the delivery period approaches and fundamentals remain mixed.

This morning (Indian Standard Time), ICE cotton for December 2025 was trading at 62.68 cents per pound (up 0.11 cent), cash cotton at 62.39 cents (up 0.33 cent), the March 2026 contract at 63.38 cents (down 0.01 cent), the May 2026 contract at 65.59 cents (up 0.02 cent), the July 2026 contract at 66.71 cents (up 0.09 cent), and the October 2026 contract at 67.48 cents (up 0.15 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

ALCHEMPro News Desk (KUL)