ICE cotton futures ease as harvest progress matches 5-year average

ICE’s most active December 2025 contract settled at 66.22 cents per pound (0.453 kg), down 0.07 cent. The contract hit an intraday low of 66.11 cents, its weakest level since September 8. Other contracts closed between 62 points lower and 4 points higher.

ICE cotton futures slipped after touching a two-week low, with December 2025 settling at 66.22 cents per pound.
Improved US harvest progress, now at 12 per cent, and weak grain markets pressured sentiment, partly offset by a softer US dollar.
Analysts said demand remains steady, but traders stay cautious ahead of peak harvest.
Brazil’s September exports fell 13.61 per cent year-on-year.

A weaker US dollar, which ended a three-day winning streak against the euro and Swiss franc, lent some support to cotton. However, falling crude oil prices exerted downward pressure, as lower polyester production costs weighed on sentiment.

Total trading volume stood at 32,669 contracts, compared with 27,722 on Friday. Average daily volume for the week was 32,928 contracts. CFTC data showed speculators cut net short positions by 9,139 contracts, leaving 65,507 contracts short as of September 16. ICE-certified deliverable cotton stocks were unchanged at 15,474 bales as of September 19.

US harvest progress reached 12 per cent, up from 9 per cent last week and matching the five-year average, though slightly behind 13 per cent last year. USDA’s weekly crop progress report pegged cotton quality at 47 per cent, down from 52 per cent last week but above 37 per cent a year earlier.

Analysts said demand expectations remain decent, but traders are cautious ahead of the main harvest.

Brazil’s Secex reported exports of 104,616.47 tons in the first three weeks of September, averaging 6,974.43 tons per day, down 13.61 per cent from last year’s 8,073.20 tons per day.

US stock markets saw all three major indices hit record highs for the third consecutive day, supported by an interest rate cut and expectations of further easing in 2025. Wheat futures hit a new contract low on uncertainty over Chinese demand, while CBOT soybean futures fell to a six-week low amid a weak US export outlook.

Currently, ICE cotton for December 2025 is trading at 66.16 cents per pound (down 0.06 cent), cash cotton at 64.22 cents (down 0.07 cent), the October 2025 contract at 64.32 cents (down 0.62 cent), the March 2026 contract at 68.08 cents (down 0.10 cent), the May 2026 contract at 69.49 cents (down 0.08 cent) and the July 2026 contract at 70.59 cents (down 0.01 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

Fibre2Fashion News Desk (KUL)