Market Movement from 06th Apr 2026 to 11th Apr 2026.
• As the May contract approaches option expiry, funds have started rolling over their positions into the July contract. Strong yarn demand sentiment, along with decent export sales and shipments, supported the May contract, resulting in another positive week for the market. Although the somewhat bearish WASDE report was largely ignored by traders, NY May futures ultimately closed the week with a gain of 230 points week-on-week.
There are no changes to supply and demand categories in the 2025/26 U.S. cotton balance sheet this month. The season-average farm price forecast is raised 1 cent to 61 cents/lb.
The forecast for 2025/26 world cotton production is raised almost 900,000 bales this month with 300,000-bale increases each for China, India and Pakistan, and small changes for other countries.
Markets remain driven by geopolitics and energy, with Middle East tensions and inflation data in focus.
• Crude oil continues to lead the macro narrative as escalating Middle East conflict keeps energy markets elevated and sentiment highly reactive to headlines. The macro tone remains supportive but volatile, with this week’s inflation data, including PCE and CPI, set to test whether the current narrative can hold.
Gujcot Second Quarterly Rate Movement Report - 2025-26
During the second quarter of 2026, ICE cotton futures displayed a mixed trend with an initial phase of weakness followed by a strong recovery towards the end of the quarter.
At the beginning of January, both ICE March and May futures traded in a relatively stable range, with ICE May hovering around 65.50–66.50 cents and ICE March near 64.00–65.00 cents.
Market Movement from 30th Mar 2026 to 04th Apr 2026.
• During the week, stronger export sales and firm crude oil prices supported another positive week for NY futures. NY May closed with a weekly gain of 146 points.