ICE cotton dips further on harvest pressure, US shutdown impact

ICE December cotton futures settled at 65.09 cents per pound, down 0.5 cent (0.8 per cent). The March contract closed at 67.04 cents, down 0.42 cent, while other contracts ended 23–50 points lower.

ICE cotton futures extended losses as rapid US harvesting and the ongoing government shutdown weighed on sentiment.
December 2025 cotton settled at 65.09 cents per pound, while trading volume slumped to 42,492 contracts.
Analysts warned prices could test 62 cents, pressured by strong harvest progress and a firmer dollar.
Meanwhile, grains gained on US–China trade optimism.

Trading volume fell sharply to 42,492 contracts from 60,821 cleared the previous day. Global market activity was limited, as China’s ZCE cotton futures remain closed until October 9 for the Mid-Autumn holidays.

The US government shutdown entered its second day but caused no major immediate market reaction, although the USDA’s weekly export sales report and the CFTC cotton on-call report were not released. A USDA spokesman confirmed that all reports and data releases are suspended during the shutdown.

Market analysts noted that cotton prices remain pressured by harvest progress and a stronger US dollar. Prices could continue trending lower and may test the 62-cent level.

The USDA’s latest crop progress report, released earlier in the week before the shutdown, showed the US cotton harvest at 16 per cent complete as of September 28, matching the five-year average.

In grains, soybeans, corn, and wheat closed higher for the second consecutive session, with soybeans rallying on optimism around US–China trade talks. President Trump emphasised soybeans as a key agenda item in his upcoming meeting with Chinese President Xi.

The US stock market extended its rally, with the Dow, S&P, and NASDAQ closing higher for the fifth consecutive session, all finishing at record highs. The S&P and NASDAQ also touched fresh intraday peaks. Overall, while equity and grain markets reflected optimism, cotton futures extended their decline for the second straight day, highlighting continued bearish pressure from harvest progress and macroeconomic uncertainties.

Currently, ICE cotton for December 2025 is trading at 65.04 cents per pound (down 0.05 cent), cash cotton at 63.09 cents (down 0.50 cent), the October 2025 contract at 62.65 cents (down 0.50 cent), the March 2026 contract at 66.98 cents (down 0.06 cent), the May 2026 contract at 68.34 cents (down 0.02 cent) and the July 2026 contract at 69.49 cents (down 0.03 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

Fibre2Fashion News Desk (KUL)