The most active March 2027 cotton contract on ICE Futures US gained 12 points, or 0.15 per cent, to settle at 82.51 cents per pound. The December 2026 contract rose 15 points to 78.67 cents per pound, compared with Wednesday’s settlement of 78.52 cents. The December/March spread stood at 384 points, with March trading at a premium.
US cotton futures settled marginally higher on Thursday, with March 2027 on ICE Futures US up 0.15 per cent at 82.51 cents per pound, supported by recent strong export sales.
A stronger US dollar, weaker Chicago grains and harvest pressure capped gains, while USDA cut US output to 13.18 million bales.
Traders await the delayed USDA export sales report; ICE-certified stocks rose to 76,570 bales.
The US dollar climbed to its highest level in nearly 19 months on Thursday, following stronger inflation data that prompted markets to reassess the Federal Reserve’s interest rate outlook. A stronger dollar makes US cotton more expensive for overseas buyers, particularly when competing with supplies from Brazil and Australia.
Chicago corn, wheat and soybean futures also declined as the dollar’s appreciation weighed on export sentiment across agricultural commodities.
According to market analysts, the cotton market showed little reaction to the USDA’s monthly supply and demand report released on Tuesday. The agency reduced its estimate of US cotton production by 267,000 bales to 13.18 million bales but also lowered its domestic demand projection.
Weakness in Chicago grain markets, the stronger dollar and the continuing harvest were influencing cotton prices. The arrival of newly harvested cotton has also increased market availability, limiting the potential for a stronger recovery.
Market participants are now awaiting Friday’s USDA weekly export sales report, which has been delayed by one day due to the Veterans Day holiday. Export sales have remained strong over recent weeks, providing underlying support to cotton futures despite broader market weakness.
ICE-certified cotton stocks increased to 76,570 bales as of November 10, compared with 75,380 bales on the previous trading day, representing an increase of 1,190 bales. The rise in exchange-certified inventories added to concerns about near-term supply availability.
Meanwhile, higher crude oil prices provided some support to cotton. Rising crude prices can increase polyester production costs, potentially improving cotton’s relative competitiveness against the synthetic fibre.
This morning (Indian Standard Time), March 2027 cotton traded at 82.51 cents per pound (unchanged). Cash cotton was quoted at 77.67 cents (up 0.15 cent), while the December 2026 contract traded at 78.76 cents (up 0.09 cent). The May 2027 contract traded at 84.20 cents (down 0.01 cent), the July 2027 contract at 84.68 cents (unchanged), and the October 2027 contract at 78.58 cents (up 0.29 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Fibre2Fashion News Desk (KUL)
