ICE cotton futures slide on weak US exports, rising supply pressure

The most active March 2026 cotton futures settled at 63.10 cents per pound, down 0.84 cents, or 1.31 per cent. The March, May, July, and October 2026 contracts also declined, while the December 2026 contract touched a new intra-day low.

Market sentiment remained bearish, with no fresh bullish triggers. Fundamentals continued to weigh on prices, as US mill use hovered near a 150-year low, highlighting structurally weak demand. US ending stocks are projected at 4.5 million bales, signalling a heavy supply overhang, while cotton continues to lose textile demand to synthetic fibres.

Trading volume rose to 51,532 contracts, the highest in four weeks, confirming strong bearish participation. ICE certified stocks stood at 12,474 bales as of December 15, down from 13,971 bales the previous day.

Market analysts noted that the post-harvest market remains directionless, with growers weighing the decision to sell or store. A weaker dollar could provide longer-term support. However, the US dollar index retreated despite stronger-than-expected US jobs data, pointing to Federal Reserve caution on further rate cuts. The US added 64,000 jobs in November, exceeding expectations.

According to CFTC data for the week ended November 25, net short positions declined by 5,398 contracts to 66,081, indicating a modest improvement in sentiment.

This morning (Indian Standard Time), ICE cotton for March 2026 traded at 63.27 cents per pound, up 0.17 cent. Cash cotton was quoted at 60.85 cents, down 0.84 cent. The May 2026 contract traded at 64.45 cents, up 0.19 cent; July 2026 at 65.60 cents, up 0.22 cent; October 2026 at 65.87 cents, down 0.78 cent; and December 2026 at 67.27 cents, up 0.24 cent. A few contracts remained at their previous closing levels, with no trades recorded so far today.

ALCHEMPro News Desk (KUL)