The most active December 2026 contract settled at 80.87 cents, down 0.64 cent. The contract has lost 67 points over the past two sessions but continues to hold on to most of last week’s 442-point rally. Other nearby contracts settled 23 to 74 points lower.
ICE cotton futures fell for a second straight session as weaker demand prospects following the USDA’s July WASDE report and China’s planned state cotton reserve auctions weighed on sentiment.
The December 2026 contract settled at 80.87 cents, down 0.64 cent, while lower certified stocks and continued trading above the 80-cent level suggested underlying market support.
The China National Cotton Reserves Corporation announced that it will begin selling state cotton reserves from July 20, 2026, in line with government policy to better meet the raw material needs of textile mills. Auctions will be held on every official working day, with daily sales volumes adjusted according to market conditions.
The reserve auction announcement produced mixed market reactions. Some traders viewed the auctions as bearish because additional cotton will become available to Chinese mills, while others considered them bullish over the longer term, as reserve sales could eventually require replenishment through new purchases, including imports.
Trading volume declined to 47,826 contracts, compared with 59,297 contracts in the previous session, reflecting reduced participation as the market consolidated after last week’s strong advance.
Market analysts said the market’s weakness was mainly driven by concerns over softer demand following the USDA report, which increased 2026-27 US cotton production by 400,000 bales to 13.70 million bales and projected global ending stocks to rise by 300,000 bales. Much of the report had already been priced into the market, with profit-taking accelerating after last week’s rally.
CBOT soybean futures declined after better-than-expected US crop condition ratings and reduced concerns about weather stress across the Midwest triggered profit-taking. Corn futures also edged lower, adding pressure across agricultural markets.
Brazil’s crop agency, Conab, estimated 2025-26 cotton production at 4.0598 million tonnes, down 0.5 per cent from 4.0815 million tonnes in 2024-25. Conab also estimated Brazil’s 2025-26 cotton planted area at 2.0186 million hectares, down 3.2 per cent from 2.0856 million hectares in the previous season.
ICE-certified cotton stocks continued to decline, falling to 121,285 bales as of July 13, compared with 127,127 bales previously, reflecting another reduction in deliverable supplies.
Despite the two-day pullback, December futures continue to trade above the key 80-cent level, suggesting the broader technical structure remains constructive while traders monitor demand, weather developments, and China’s reserve auctions for the next directional move.
This morning (Indian Standard Time), ICE December 2026 cotton traded at 80.57 cents per pound (down 0.30 cent), cash cotton at 76.35 cents (up 0.52 cent), the October 2026 contract at 79.33 cents (down 0.27 cent), the March 2027 contract at 81.99 cents (down 0.24 cent), the May 2027 contract at 82.79 cents (down 0.24 cent), and the July 2027 contract at 82.19 cents (down 0.37 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
