ICE cotton futures recover on technical buying, weaker dollar

ICE’s most active December 2025 contract settled at 67.30 cents per pound (0.453 kg), up 0.62 cent.

The dollar weakened against major currencies as markets increased bets that the Federal Reserve will cut interest rates next month. New York Federal Reserve Bank president John Williams also hinted at a possible rate cut.

Market analysts noted that the cotton market is experiencing a natural rebound after several days of heavy selling pressure, with additional support coming from the weaker dollar.

On August 27, the US government officially imposed an additional 25 per cent punitive tariff on Indian goods, raising the total tariff on most products to 50 per cent. However, the Indian government extended the exemption on import duties for raw cotton until December 31, 2025. Before this exemption, imported cotton into India was subject to a total tariff of approximately 11 per cent.

ICE data (as of August 27) showed that deliverable No. 2 cotton futures contract inventory remained unchanged at 15,474 packages.

Currently, ICE cotton for December 2025 is trading at 67.24 cents per pound (down 0.06 cent), cash cotton at 64.79 cents (up 0.63 cent), the October 2025 contract at 66.04 cents (up 0.63 cent), the March 2026 contract at 68.98 cents (down 0.10 cent), the May 2026 contract at 70.32 cents (down 0.09 cent) and the July 2026 contract at 71.12 cents (down 0.09 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)