ICE cotton futures again lost momentum and closed lower as a stronger US dollar discouraged cotton buying, making the commodity costlier for overseas purchasers. Additionally, market participants are assessing the implications of the ongoing US government shutdown, which has disrupted the release of key agricultural data.

ICE December cotton futures settled at 64.47 cents per pound, down 0.44 cents or 0.70 per cent.

ICE cotton futures extended losses as a stronger US dollar dampened overseas demand, and the ongoing US government shutdown halted key USDA data releases.
December futures settled at 64.47 cents per pound, down 0.70 per cent.
Meanwhile, China’s NDRC announced 2026 cotton import quotas of 894,000 tons, balancing domestic supply through flexible allocation between state and non-state trade.

The US Dollar Index climbed to a two-month high, making dollar-denominated cotton futures relatively more expensive for buyers using other currencies. The strong dollar continues to act as a dominant factor suppressing cotton’s upward momentum.

Trading volumes remained moderate as investors monitored currency movements and the impact of the government shutdown. Data from ICE showed that as of October 8, deliverable stocks under ICE’s No. 2 cotton futures contract stood at 16,471 bales, down from 17,891 bales the previous day—reflecting a modest drawdown in certified inventories.

Market analysts noted that cotton has been moving almost exactly opposite to the dollar over the past few weeks, a trend expected to continue. As long as the dollar remains strong, cotton prices are unlikely to rise significantly.

In addition to currency effects, traders are evaluating the impact of the US government shutdown, which has halted the release of key agricultural data from the US Department of Agriculture (USDA).

According to the USDA’s official website, due to the shutdown, the department will suspend publication of its monthly World Agricultural Supply and Demand Estimates (WASDE) report until further notice. The WASDE report is a vital source of market insight into global cotton demand, production, and ending stocks.

The USDA’s weekly Crop Progress and Export Sales reports have also been temporarily suspended, limiting access to up-to-date market information for traders and analysts.

Meanwhile, on the global front, China’s National Development and Reform Commission (NDRC) has released detailed regulations governing cotton import tariff quotas for 2026. The total quota has been set at 894,000 tons, with 33 per cent allocated to state-owned trade and the remaining 67 per cent available for non-state trade.

According to the NDRC notice published by the Securities Times, the allocation rules allow enterprises to determine trade methods independently, without restrictions on import mechanisms or timing. This policy aims to enhance flexibility in cotton import management while maintaining balance in domestic market supply.

In summary, the ICE cotton market on October 9 remained under pressure from a strengthening US dollar and the absence of key USDA data amid the government shutdown, leading to a downward close for December futures.

Currently, ICE cotton for December 2025 is trading at 64.38 cents per pound (down 0.09 cent), cash cotton at 61.97 cents (down 0.44 cent), the March 2026 contract at 66.25 cents (down 0.09 cent), the May 2026 contract at 67.62 cents (down 0.04 cent), the July 2026 contract at 68.75 cents (down  0.08 cent) and the October 2026 contract at 68.39 cents (down 0.30 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

Fibre2Fashion News Desk (KUL)