ICE cotton hits one-week high on weak dollar, short covering

ICE’s most active December 2025 contract settled at 68.01 cents per pound (0.453 kg), up 0.59 cent (0.88 per cent). During the session, the contract touched a one-week high of 68.30 cents, the strongest level since August 13. The December contract has gained 165 points over the last three weeks, marking its third straight weekly rise. Other active month contracts closed with gains of 32 to 64 points. These contracts rose 16 to 67 points during the week, though the May 2028 and July 2028 contracts eased.

The US dollar index fell to a one-week low after Fed Chair Jerome Powell hinted at a possible September rate cut without firm commitment. A weaker dollar makes dollar-priced cotton more attractive for overseas buyers, improving export competitiveness.

Crude oil gained for the first time in three weeks, supported by uncertainty over the Russia–Ukraine peace deal. Higher crude oil raises polyester production costs, indirectly supporting cotton demand.

Trading volume rose to 36,086 contracts compared with 26,215 the previous day, while the weekly average daily volume was 29,081 contracts. ICE deliverable No. 2 cotton stocks declined to 15,474 packages on August 21 from 16,006 the previous day, reflecting a tightening trend.

Technical indicators turned bullish, with strong short covering and key resistance seen at 68–69.50 cents.

CBOT soybean futures also climbed to a two-month high, supported by strong export demand and a rebound in soy oil despite favourable US crop conditions.

Currently, ICE cotton for December 2025 settled at 68.01 cents per pound (up 0.59 cent), cash cotton at 65.18 cents (up 0.54 cent), the October 2025 contract at 66.43 cents (up 0.54 cent), the March 2026 contract at 69.74 cents (up 0.64 cent), the May 2026 contract at 71.01 cents (up 0.62 cent), and the July 2026 contract at 71.71 cents (up 0.59 cent).

ALCHEMPro News Desk (KUL)