– Reporting Period 07 – 20 October 2026 –
ICE Cotton No. 2 futures traded largely sideways. The December 2026 contract opened the current reporting period at 80.03 ct/lb and closed it at 80.88 ct/lb, fluctuating around the 80 ct/lb mark in between. Following recent fluctuations, the futures have stabilized for the time being.
Experts attribute the stabilization of the futures market to a significant reduction in speculative positioning. Fundamentally, forecasts continue to point to a consumption surplus, which could lead to a reduction in ending stocks.
Physical quotations have also remained stable. The more Brazil establishes itself as the world’s leading cotton exporter, the more ICE futures seem to lose their leading position, especially since they reflect only the domestic U.S. market.
On the macroeconomic front, rising oil prices should improve cotton’s position relative to synthetic fibres; however, this also increases production and transportation costs.