ICE cotton steady as weak dollar offsets poor export sales

ICE’s most active December 2025 contract settled at 66.72 cents per pound (0.453 kg), up 0.05 cent. In the previous session, it had touched its highest level since August 29.

Market analysts said the export sales report did not provide enough momentum to push prices higher, and trading remained choppy for most of the day. The USDA weekly export sales report showed that net sales of upland cotton for the 2025–26 marketing year were 129,600 RB, down 47 per cent from the previous week and 33 per cent below the four-week average.

The US dollar slipped after a modest rise in August inflation and weaker-than-expected jobless claims, reinforcing expectations that the Federal Reserve will cut interest rates next week. A weaker dollar makes dollar-priced cotton more affordable for buyers using other currencies.

Attention has now shifted to the USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report, due on Friday, which is expected to provide fresh insights into cotton demand. Market expectations suggest production may rise slightly—by about 30,000 bales—while exports and ending stocks are likely to remain unchanged, indicating no major revisions.

Chicago corn and soybean futures stabilised after two consecutive days of decline, as traders squared positions ahead of Friday’s WASDE report, which will include closely watched US corn and soybean harvest estimates.

Data from the Intercontinental Exchange (ICE) showed that as of September 10, deliverable No. 2 cotton futures contract inventory remained unchanged at 15,474 packages.

Currently, ICE cotton for December 2025 is trading at 66.51 cents per pound (down 0.21 cent), cash cotton at 64.12 cents (down 0.19 cent), the October 2025 contract at 65.37 cents (down 0.19 cent), the March 2026 contract at 68.44 cents (down 0.19 cent), the May 2026 contract at 69.90 cents (down 0.20 cent) and the July 2026 contract at 70.70 cents (down 0.18 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)