ICE cotton extends rally as U.S. crop ratings slip to 46%
AI Market Summary
ICE cotton futures extended a two-day rally as US crop condition ratings slipped to 46% good/excellent, tightening near-term supply expectations. Squaring and boll-setting progress is broadly in line with seasonal norms, while managed money reduced net longs, tempering the bullish signal from price action. External drivers were muted with a slightly firmer dollar and marginally softer crude; key cash benchmarks (Cotlook A, AWP) weakened.
Impact level
● Medium
Affected assets
NCCOCOTTON2USD/USDT+2.25%
AI Insight · NCCOCOTTON2USD/USDTAI Insight
● Neutral
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ICE cotton futures posted a second straight session of sharp gains, with the July contract up 138 points on Monday and adding another 102 points in early Tuesday trade. U.S. cotton condition ratings fell to 46% good/excellent, down 2 percentage points on the week, while the crop was 14% setting bolls, in line with the five-year average. Managed money cut its net long in cotton futures and options by 6,460 contracts as of June 30, bringing it to 31,985. Outside markets were subdued, with the U.S. dollar index slightly higher and crude oil marginally lower.
