ICE cotton dips as traders await WASDE & Fed meeting

ICE cotton futures declined yesterday as traders adopted a cautious stance ahead of USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report. The report is expected to indicate slower export sales. Profit-booking also took place before Wednesday’s US Federal Reserve meeting.

The more active March 2026 cotton futures settled at 63.68 cents per pound, down 0.25 cents. The contract has shown a declining trend for the sixth consecutive day. The May 2026 contract fell 25 points, while the July 2026 contract eased 24 points. Other contracts closed mixed, fluctuating between 26 points lower and 23 points higher.

ICE cotton futures fell as traders turned cautious ahead of USDA’s WASDE report and Wednesday’s US Federal Reserve meeting.
The March 2026 contract dropped for a sixth straight day, settling at 63.68 cents.
Trading volume hit a 12-session high, while deliverable stocks declined.
Analysts expect only minor WASDE adjustments, with slightly weaker export estimates.

Total ICE trading volume rose to 40,884 contracts, the highest in 12 sessions. Friday’s cleared volume was 36,584. The December 2025 contract entered its final trading day with an exceptionally wide 2,055-point range between 60.79 and 81.34 cents per pound.

Market sentiment remained cautious due to profit-taking ahead of Wednesday’s US Federal Reserve meeting. Traders expect a strong likelihood of a rate cut, but rising US Treasury yields are weighing on market confidence.

The USDA WASDE update for the week ending December 9 is expected to show limited changes, with market analysts anticipating a slight downward revision in export estimates.

ICE deliverable No. 2 cotton stocks on December 5 fell to 13,971 bales from 15,585 bales. Major US stock indices also closed lower ahead of the Fed decision.

This morning (Indian Standard Time), ICE cotton for March 2026 was at 63.73 cents per pound (up 0.05 cent), cash cotton at 61.68 cents (down 0.25 cent), the December 2025 contract at 61.88 cents (down 0.25 cent), the May 2026 contract at 64.80 cents (up 0.04 cent), the July 2026 contract at 65.86 cents (up 0.06 cent), and the October 2026 contract at 66.57 cents (down 0.26 cent). A few contracts remained at their previous closing levels with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)