The most traded March cotton contract rose 0.55 cent to settle at 61.61 cents per pound. Cotton prices had previously fallen to their lowest level since early April last year before experiencing a rebound.
ICE cotton futures ended an eight-day losing streak as short covering lifted prices from oversold levels, supported by a weaker US dollar that improved export competitiveness. The March contract closed higher after hitting recent lows. Speculative net short positions increased, while stocks of deliverables increased. Investors remain cautious awaiting the USDA supply and demand report.
The US dollar index fell to a more than one-week low, improving the competitiveness of dollar-denominated cotton for foreign buyers.
The buying interest was primarily attributed to short covering rather than new bullish fundamentals. Market analysts said the market was “severely oversold”, prompting pre-coverage 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 amounted to 63,583 contracts in the week ending February 3. ICE data showed stocks of deliverable No. 2 cotton stood at 93,561 bales as of Feb. 6, up from 74,997 bales the previous day.
The relative strength index (RSI) for cotton futures fell below 30 on Friday, indicating oversold conditions. The RSI recovered to 32 on Monday as prices rallied.
Investors’ attention remains focused on the USDA supply and demand report due out on Tuesday. The report will update forecasts for soybean production, consumption and ending stocks in the United States and the world.
This morning (Indian Standard Time), ICE cotton for March 2026 was trading at 62.13 cents per pound (up 0.52 cents), spot cotton at 59.61 cents (up 0.55 cents), May 2026 contract at 64.32 cents (up 0.56 cents), July 2026 contract at 66.07 cents (up 0.62 cents), the October 2026 contract at 67.39 cents (up 0.21 cents) and the December 2026 contract at 68.36 cents (up 0.41 cents). Some contracts remained at their previous closing levels and no trading has been recorded so far.
Fiber2Fashion News Desk (KUL)
