ICE cotton nears two-week low on weak exports, strong dollar

ICE’s most active December 2025 contract settled at 66.28 cents per pound (0.453 kg), up 0.11 cent, holding near Tuesday’s lowest level since September 8. Other contracts ended lower by up to 21 points, except for the October 2025 contract, which closed higher.

The December contract has closed with the 66-cent handle in 19 of the last 22 sessions since August 26, trading in a narrow 181-point range between 6603 and 6784 points during this period. The contract’s lowest close was 6603 on September 5, while the contract low was 6424 on April 4.

Trading volume stood at 29,127 contracts, compared to 25,380 contracts the previous day. The compressed trading range reflects low volatility and underlying weakness in the market. ICE data showed deliverable No. 2 cotton stocks remained unchanged at 15,474 bags as of September 24.

USDA reported net export sales of 86,100 bales for the current marketing year for the week ending September 18, down 54 per cent from the previous week and 53 per cent below the four-week average.

Market analysts said the sales figures were not strong enough to encourage buying, with speculators waiting for harvest pressure and potentially lower prices. USDA’s crop progress report showed that 12 per cent of US cotton had been harvested by September 21, up from 9 per cent the previous week and in line with the five-year average.

In grain markets, CBOT soybean futures settled slightly higher after Argentina reinstated an export tax, while corn futures also finished slightly higher amid focus on US harvest results.

Currently, ICE cotton for December 2025 is trading at 66.26 cents per pound (down 0.02 cent), cash cotton at 64.28 cents (up 0.11 cent), the October 2025 contract at 63.83 cents (down 0.21 cent), the March 2026 contract at 68.24 cents (up 0.05 cent), the May 2026 contract at 69.56 cents (up 0.04 cent) and the July 2026 contract at 70.56 cents (up 0.01 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)