ICE cotton futures extended gains on strong short covering, with May 2026 settling at 65.56 cents per pound, the highest since January 20, 2026.
The rally was driven by short liquidation amid US tariff uncertainty and positioning ahead of the US export sales report.
USDA projected 3 per cent lower global output and 1 per cent higher consumption in 2026–27, tightening the supply–demand balance.