ICE cotton stays weak as dollar falls; WASDE report awaited

ICE cotton futures remained bearish and slipped yesterday ahead of USDA’s World Supply and Demand (WASDE) report. Traders were cautiously waiting for the release to assess the demand and supply outlook. However, weakness in the US dollar offered slight support and limited the decline in US cotton prices.

ICE March 2026 cotton futures settled at 64.53 cents per pound, down 0.28 cents or 0.43 per cent. New contract-low closes were recorded for December 2025, March 2026, May 2026, and July 2026 for the second consecutive session.

ICE cotton futures remained weak ahead of WASDE report, with March 2026 settling lower and several contracts hitting new lows.
A softer US dollar offered limited support, while market caution persisted amid weak demand and muted buying.
US government’s reopening and recent export sales data had little impact, and analysts expect higher supply estimates as December’s first delivery date approaches.

The dollar fell to a two-week low, improving foreign buying interest, while Wall Street’s sharp decline and fading expectations of rate cuts added to overall market caution.

Total volume traded today stood at 94,153 contracts, while yesterday’s cleared volume of 115,071 contracts ranked as the eighth-highest on record.

The US government reopened after a 43-day shutdown, with most federal services resuming, and cotton prices remaining flat. Loan programmes will offer temporary relief to growers.

USDA export net sales for the week ending September 25 were 200,600 bales, including 199,500 Upland bales and 1,100 Pima bales for the 2025–26 season. This was the last weekly US cotton sales report issued before the shutdown.

Market sentiment remains under pressure as sellers are not realising profits despite competitive pricing, and demand is expected to stay muted.

Market analysts said the upcoming USDA report may show higher supply and a slight reduction in export projections. The December contract remained under pressure as the first delivery date approaches on November 21.

This morning (Indian Standard Time), ICE cotton for December 2025 was trading at 62.93 cents per pound (up 0.03 cent), cash cotton at 60.40 cents (down 0.40 cent), the March 2026 contract at 64.56 cents (up 0.03 cent), the May 2026 contract at 65.76 cents (up 0.06 cent), the July 2026 contract at 66.85 cents (up 0.04 cent), and the October 2026 contract at 67.33 cents (down 0.26 cent). A few contracts were unchanged from their previous close, with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)