ICE cotton dips to weekly low on weak US export sales

ICE cotton futures fell to their lowest level in more than a week, as slow US export sales and broader market softness weighed on sentiment. The tone remained a gradual drift downward amid mixed global markets and US equities hovering near all-time highs ahead of next week’s Federal Reserve meeting.

The more active March 2026 cotton futures settled at 64.08 cents per pound, down 0.38 cent. Earlier in the session, the contract touched its lowest level since November 26. This marked the fourth consecutive decline, totalling a loss of 63 points across the past four sessions. This slide followed a five-session rally in which the contract had gained 97 points.

ICE cotton futures fell to their lowest level in over a week as weak US export sales and broader market softness dampened sentiment.
March 2026 futures dropped to 64.08 cents, marking a four-session, 63-point decline.
USDA reported a sharp fall in weekly export sales, while equities were flat ahead of a likely Federal Reserve rate cut.
Traders now await the December USDA export and WASDE reports.

Daily trading volume reached 25,359 contracts, slightly below the previous day’s 26,902.

Analysts said weak equity performance and soft export sales kept cotton range-bound, with downside potential towards 63 cents.

US stock markets closed nearly flat as investors assessed labour market data and broader economic indicators. Expectations of a Federal Reserve rate cut continued to strengthen, with CME FedWatch indicating an 87 per cent probability of a cut next week.

Stronger global economic conditions typically support the textile sector, boosting cotton demand and prices.

USDA export sales for the week ending October 30 showed net sales of 81,500 bales for the current season—down 39 per cent from the previous week and 51 per cent from the four-week average.

Market attention now turns to the next USDA export sales report on December 8, 2025, and the WASDE report on December 09, 2025, for further clarity on demand trends.

CBOT soybean futures closed higher on a technical rebound, while ICE-certified cotton stocks remained unchanged at 19,894 bales as of December 3, 2025.

This morning (Indian Standard Time), March 2026 ICE cotton traded at 64.10 cents per pound (up 0.02 cent). Cash cotton was at 62.08 cents (down 0.38 cent). The December 2025 contract traded at 62.28 cents (down 0.38 cent), the May 2026 at 65.19 cents (down 0.04 cent), the July 2026 at 66.24 cents (down 0.02 cent), and the October 2026 at 66.97 cents (down 0.10 cent). Several contracts remained unchanged, with no trades recorded so far today.

Fibre2Fashion News Desk (KUL)