The most active March 2026 cotton futures settled at 64.85 cents per pound, down 0.21 cent. Prices ended near the day’s lows, reflecting selling pressure into the close. The first five contracts settled lower by 1 to 29 points. The March 2026 contract trimmed its week-to-date gain to 84 points after the decline. Contracts beyond the front five settled higher by 7 to 40 points, indicating mixed performance across maturities.
ICE cotton paused after recent gains, pressured by weaker crude oil prices and a stronger US dollar.
March 2026 futures settled lower amid selling into the close, while contract performance remained mixed.
Higher open interest signalled rising participation, but upside momentum stayed limited. ‘
Chinese cotton prices remained firm, and strong Brazilian exports supported longer-term market fundamentals.
Falling crude oil prices weighed on cotton as cheaper polyester reduced demand for natural fibres.
Trading volume stood at 64,388 contracts, strong but lower than the previous session’s 90,224 contracts. Total open interest rose to its highest level since November 30, 2023, signalling increased market participation.
ICE data showed deliverable No.2 cotton stocks at 11,510 bales as of January 6. ICE-certified stocks were unchanged from the previous trading day.
Mills were active in fixing on-call sales, adding commercial participation to the market. Growers sold cotton as March futures traded above the 65-cent level during the session. Speculative buying supported prices early in the day before macroeconomic pressures took over.
According to market analysts, speculators are returning with small purchases. US cotton production may decline slightly this year, potentially supporting prices later in 2026.
China’s ZCE cotton futures closed higher, posting gains in 18 of the last 20 sessions. Prices touched their highest level since June 12, 2024, reflecting strong sentiment in the Chinese market.
Grain markets reversed the previous day’s losses and closed near session highs. The Dow Jones and S&P 500 both set new all-time intraday highs but ended the session lower.
Data from Brazil’s Ministry of Development showed December cotton exports at 452,500 tons, up 28.2 per cent year-on-year, driven mainly by Asian demand. Brazil remains the world’s largest cotton exporter, with 2024–25 cotton production projected at a record level above 4 million tons.
Overall, the cotton market continues to show mixed signals, with higher activity and rising open interest but limited upside price momentum.
This morning (Indian Standard Time), ICE cotton for March 2026 was trading at 64.71 cents per pound (down 0.14 cent), cash cotton at 62.60 cents (down 0.21 cent), the May 2026 contract at 66.15 cents (down 0.12 cent), the July 2026 contract at 67.52 cents (down 0.09 cent), the October 2026 contract at 68.10 cents (down 0.29 cent), and the December 2026 contract at 68.92 cents (down 0.13 cent). A few contracts remained unchanged, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)