ICE cotton recovers on grain gains, but sentiment stays weak

ICE December cotton futures settled at 64.91 cents per pound, up 0.45 cent or 0.70 per cent. The contract touched an intraday low of 64.16 cents, the weakest level since April 7, 2025. All contracts closed 10–45 points higher, although they remained near their recent lows.

The rise in the US dollar index increased the cost of cotton purchases for overseas buyers, further weighing on export demand.

Trading volume stood at 39,673 contracts, compared with 45,016 contracts in the previous session. Data from ICE showed that as of October 7, the deliverable stocks of the No. 2 cotton futures contract totalled 17,891 bales, unchanged from the prior day.

Some analysts indicated that the market might be approaching a bottom, noting that prices often appear weakest at turning points.

The US cotton crop is expected to be substantial, while export demand remains sluggish, keeping prices under pressure. From a statistical standpoint, market participants face challenges in determining strategies as the ongoing US government shutdown continues to dampen overall trading activity.

The two-week US government shutdown has delayed several key reports and data releases, including updates from the US Department of Agriculture (USDA).

Traders are also awaiting details of a US agricultural aid programme expected to be announced this week to support farmers affected by trade disputes and harvest conditions.

In the grain markets, Chicago Board of Trade (CBOT) corn futures rose within a narrow range, supported by lower US yield forecasts and stronger soybean prices, while wheat futures closed higher on short covering after ample global supplies had earlier pushed prices near a five-year low.

As of now, ICE cotton for December 2025 is trading at 65.05 cents per pound (up 0.14 cent), cash cotton at 62.41 cents (up 0.45 cent), the October 2025 contract at 62.47 cents (up 0.45 cent), the March 2026 contract at 66.85 cents (up 0.09 cent), the May 2026 contract at 68.15 cents (up 0.09 cent), and the July 2026 contract at 69.29 cents (up 0.08 cent). A few contracts remained unchanged from their previous closing levels, with no trades recorded today.

ALCHEMPro News Desk (KUL)