ICE cotton weakens on profit booking at 2-week high

The more active March 2026 cotton contract settled at 64.63 cents per pound, down 0.08 cent. The contract had gained 97 points over the past five consecutive sessions. Other near-month contracts fell 8–15 points in the previous session, although the October 2026 contract closed 5 points higher.

Total volume reached 33,524 contracts in the 5.5-hour post-holiday session, slightly above last week’s average of 32,028 contracts. Cotton tracked weakness across the broader commodity complex despite the absence of a clear single trigger, as traders stayed cautious ahead of upcoming US economic indicators.

The ISM Manufacturing PMI contracted for the ninth straight month, reinforcing concerns about slowing economic activity.

Market analysts said the five-day rally encouraged profit-taking, and many traders are still waiting for incoming reports.

USDA export sales for the week ending October 23 showed net sales of 132,800 bales, down 24 per cent from the previous week and 23 per cent from the four-week average. The report was delayed due to the longest US government shutdown in history, adding to market uncertainty.

The market may test the 50-day moving average at 65.92 cents, although strong selling pressure is expected near that level.

In outside markets, CBOT soybeans retreated from a one-week high, while crude oil gained over 1 per cent due to geopolitical tensions and OPEC’s Q1 2026 supply decision.

FedWatch data shows traders pricing in an 88 per cent probability of a 25-bps rate cut next week. ICE-certified stocks remained unchanged at 20,344 bales as of November 28.

This morning (Indian Standard Time), ICE cotton for March 2026 was trading at 64.78 cents per pound (up 0.15 cent), cash cotton at 62.63 cents (down 0.08 cent), the December 2025 contract at 62.83 cents (down 0.08 cent), the May 2026 contract at 65.92 cents (up 0.14 cent), the July 2026 contract at 66.93 cents (up 0.12 cent) and the October 2026 contract at 67.69 cents (up 0.05 cent). A few contracts remained at their previous closing levels, with no trades recorded so far today.

ALCHEMPro News Desk (KUL)