ICE cotton sees minor losses, market awaits USDA data

ICE’s most active December 2025 contract settled at 66.20 cents per pound (0.453 kg), down 0.01 cent. Other contracts closed between 12 points lower and 17 points higher.

Trading volume stood at 22,926 contracts compared to 21,609 in the previous session, though volumes remained relatively low across both. Open interest rose by 1,649 to 245,983 contracts, having declined in only 7 of the 45 sessions since June 30. ICE data (Sept 3) showed deliverable No. 2 cotton futures inventory at 15,474 bales.

The dollar index rose, making dollar-denominated commodities more expensive for overseas buyers. Crude oil futures fell after a surprise US inventory build and expectations of higher OPEC+ output. Lower oil prices boosted demand for polyester-cotton substitutes.

Analysts noted that risk aversion in the broader market, coupled with a stronger dollar and weak jobs data, is weighing on cotton.

CBOT soft red winter wheat futures also declined, pressured by ample global supplies.

The S&P 500 closed at a record high as labour market data did not alter expectations for Fed rate cuts. Markets now await the US jobs report due Friday.

Attention also turns to the USDA’s weekly export sales report, due Friday (delayed by Labor Day). Last week’s report showed 2025-26 US cotton export sales up 179,300 bales, including 4,400 bales to China. Cotton trading is likely to fluctuate in the 64–68.50 cent range in the near term.

Currently, ICE cotton for December 2025 is trading at 65.90 cents per pound (down 0.30 cent), cash cotton at 63.44 cents (down 0.04 cent), the October 2025 contract at 64.69 cents (unchanged), the March 2026 contract at 67.81 cents (down 0.28 cent), the May 2026 contract at 69.21 cents (down 0.27 cent) and the July 2026 contract at 70.11 cents (down 0.26 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)