The most actively traded March cotton contract rose by 0.55 cent to settle at 61.61 cents per pound. Cotton prices had earlier dropped to their lowest level since early April last year before staging a rebound.
ICE cotton futures ended an 8-day losing streak as short covering lifted prices from oversold levels, supported by a weaker US dollar that improved export competitiveness.
March contract settled higher after hitting recent lows.
Speculative net shorts increased, while deliverable stocks rose.
Investors remain cautious ahead of the USDA supply and demand report.
The US dollar index slipped to a more than one-week low, improving the competitiveness of dollar-denominated cotton for overseas buyers.
Buying interest was mainly attributed to short covering rather than fresh bullish fundamentals. Market analysts said the market was “severely oversold,” prompting covering ahead of key data.
CFTC data showed that speculators increased net short positions in ICE cotton futures and options by 1,816 contracts. Total speculative net short positions stood at 63,583 contracts in the week ended February 3. ICE data showed deliverable No. 2 cotton stocks at 93,561 bales as of February 6, up from 74,997 bales the previous day.
The relative strength index (RSI) for cotton futures fell below 30 on Friday, signalling oversold conditions. The RSI recovered to 32 on Monday as prices rebounded.
Investor focus remains on the USDA supply and demand report due Tuesday. The report will update forecasts for US and global soybean production, consumption, and ending stocks.
This morning (Indian Standard Time), ICE cotton for March 2026 traded at 62.13 cents per pound (up 0.52 cent), cash cotton at 59.61 cents (up 0.55 cent), the May 2026 contract at 64.32 cents (up 0.56 cent), the July 2026 contract at 66.07 cents (up 0.62 cent), the October 2026 contract at 67.39 cents (up 0.21 cent), and the December 2026 contract at 68.36 cents (up 0.41 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
