The most actively traded March cotton contract rose 0.11 cents or 0.17 per cent to settle at 64.99 cents per pound. The rest of the future contracts noticed mixed trend, closing between 9 points higher to 15 points lower, highlighting the lack of strong directional conviction among market participants.
Total trading volume for the session reached 51,325 contracts, a noticeable slowdown compared with the higher volumes recorded over the previous seven consecutive sessions. Meanwhile, 64,043 contracts were cleared from the prior trading day, indicating continued elevated participation despite the lighter daily volume.
Market sentiment remained divided. Some technical analysts pointed to bullish divergence, suggesting the potential for a price reversal and stabilisation at current levels. In contrast, others cited bearish divergence and trendline rejection, warning that prices could face renewed downward pressure if resistance continues to hold.
Market analysts commented that cotton prices appear comfortable trading around the 65 cents per pound level. Futures traded above 65 cents earlier in the week and are now holding steady. The latest supply and demand figures are “somewhat favourable” for the market.
According to the January supply and demand report released earlier in the week by the USDA, estimates for US cotton beginning stocks, domestic consumption, exports, and imports were left unchanged. However, the agency revised US cotton production downward by more than 2 per cent, lowering output to 13.9 million bales.
Data released by ICE indicated that deliverable No. 2 cotton stocks eligible for futures delivery remained unchanged at 11,029 bales as of January 13, suggesting stable certified inventory levels.
On the macroeconomic front, data released Wednesday showed that US producer prices rose modestly in November, largely driven by a surge in gasoline costs. At the same time, US retail sales increased more than expected, pointing to continued resilience in consumer demand.
Additional insight from the Federal Reserve Beige Book indicated that economic activity expanded in most regions of the United States in recent weeks, while employment conditions remained largely unchanged, offering a broadly neutral backdrop for commodity markets, including cotton.
This morning (Indian Standard Time), ICE cotton for March 2026 was settled at 64.91 cents per pound (down 0.08 cent), cash cotton at 62.74 cents (up 0.11 cent), the May 2026 contract at 66.46 cents (down 0.04 cent), the July 2026 contract at 67.87 cents (down 0.04 cent), the October 2026 contract at 68.45 cents (up 0.06 cent) and the December 2026 at 69.25 cents (down 0.07 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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