ICE cotton slips ahead of US export data, trades range-bound

The most actively traded March cotton contract fell 0.36 cent to settle at 62.31 cents per pound, registering a new low on Tuesday. May 2026 contracts ended at 64.11 cents per pound, down 0.29 cent. Other contracts closed ranging from 30 points lower to 20 points higher.

The dollar’s pullback may have supported cotton, and prices are likely to fluctuate within a 62–64 cents per pound range in the near term.

Trading volume was heavy at 99,160 contracts, signalling strong participation despite range-bound price action.

The US dollar retreated after earlier gains, helping to provide intraday support to cotton prices. A weaker dollar makes dollar-denominated cotton cheaper for overseas buyers, improving export competitiveness.

The dollar weakened against most major currencies except the Japanese yen, as traders consolidated gains driven by positive US economic data and expectations of a less dovish Federal Reserve, while concerns over another potential US government shutdown weighed on sentiment.

Market attention is focused on the weekly export sales report from the USDA, scheduled for Thursday, covering the week ending January 29, for clearer demand signals. The previous USDA export sales report for the week ending January 22 showed US cotton export sales of 203,700 bales for the current marketing year. Market analysts said prices are likely to remain range-bound due to bearish technical signals.

In related markets, international crude oil futures jumped about 2 per cent after the US shot down an Iranian drone near its aircraft carrier and speedboats approached a US-flagged vessel in the Strait of Hormuz, raising geopolitical risk after oil had fallen over 4 per cent a day earlier.

ICE deliverable No. 2 cotton stocks stood at 34,268 bales as of February 02, slightly up from 34,266 bales the previous day.

This morning (Indian Standard Time), ICE cotton for March 2026 was trading at 62.21 cents per pound (down 0.10 cent), cash cotton at 60.06 cents (down 0.36 cent), the May 2026 contract at 64.06 cents (down 0.05 cent), the July 2026 contract at 65.80 cents per pound (unchanged), the October 2026 contract at 67.49 cents (down 0.17 cent) and the December 2026 contract at 68.20 cents (down 0.08 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)