ICE Cotton Falls as Traders Await Delayed Data on US Export Sales

ICE cotton futures continued to fall yesterday as traders remained cautious ahead of the upcoming export sales report, which is expected to provide clearer signals on the demand outlook. Foreign markets were mixed, which also affected the US cotton market. However, a weaker US dollar provided some support and helped limit losses.

The most traded March cotton contract fell 0.42 cent to settle at 63.88 cents per pound. The contract marked its first close in the 63-cent range since Dec. 22. The May and July 2026 contracts also fell to their lowest levels since early 2026, while other contracts showed mixed moves, ranging from down 43 points to up 14 points.

ICE cotton futures extended losses as traders remained cautious ahead of the delayed USDA export sales report, while mixed external markets weighed on sentiment. A weaker US dollar helped limit downward pressure. The March contract settled in the 63 cent range for the first time since late December, with volatility increasing and volumes improving.

The US dollar weakened during Thursday’s session after tariff threats were withdrawn and the possibility of using force to take Greenland was ruled out. The dollar’s weakness helped ease market anxiety and made dollar-denominated commodities more affordable for buyers holding other currencies.

Total trading volume rose to 61,384 contracts, the highest level recorded in the last six trading sessions. Contracts settled on the previous trading day totaled 40,577, indicating healthy participation despite the price decline.

Volatility increased in the March contract, with a daily trading range of 86 points versus just 29 points in the previous session. There are only 20 trading sessions left before the first notice day, scheduled for February 23.

Hedge funds are expected to begin rolling over their long positions from the March through May contract starting January 29, 2026. The Jim Rogers fund is expected to complete its rollover over a three-day period from that date. Goldman Sachs-related funds are scheduled to begin their five-day cycle starting February 6.

No new cotton-specific fundamental news emerged during the session and overall price action continued to reflect bearish market behavior.

CBOT soybean futures were lower on the day, trading within a volatile range but finding some support in technical buying. Optimism around U.S. soybean export prospects also helped limit downward pressure.

Major US stock indices closed higher for the second consecutive session, supported by improving investor sentiment. The gains followed President Donald Trump’s decision to withdraw tariff threats against European allies and data showing the resilience of the U.S. economy.

Market analysts noted that no sales or export reports were released during the session and that the dollar was slightly weaker. Due to the federal Martin Luther King Jr. Day holiday on Monday, the USDA’s weekly export sales report was delayed one day and will now be released on Friday instead of Thursday.

This morning (Indian Standard Time), ICE cotton for March 2026 was trading at 63.76 cents per pound (down 0.12 cents), spot cotton at 61.63 cents (down 0.42 cents), May 2026 contract at 65.38 cents (down 0.11 cents), July 2026 contract at 66.88 cents (0.09 cents less), the October contract The 2026 contract at 68.31 cents (0.02 cents less) and the December 2026 contract at 69.00 cents (0.03 cents more). Some contracts remained at their previous closing levels and no trading has been recorded so far.

Fiber2Fashion News Desk (KUL)