Rising dollar & weak oil prices weigh on ICE cotton futures

ICE December cotton futures settled at 65.20 cents per pound, down 0.48 cents.

The US dollar rose to a four-month high against the euro as internal divisions at the Federal Reserve created uncertainty over another rate cut this year. A stronger dollar made dollar-denominated commodities more expensive for buyers using other currencies, reducing demand.

US crude oil futures closed lower on Tuesday as weak economic data and a firmer dollar dampened demand. OPEC Plus decided to suspend production increases during the first quarter of next year, signalling concern about potential oversupply. Falling oil prices made polyester fibre, an alternative to cotton, more affordable, reducing demand for the natural fibre.

Trading volume declined to 57,285 contracts from 74,482 in the previous session. Total open interest rose by 2,385 contracts to 299,887, the highest level since June 14, 2018, when it reached 309,292. Deliverable No. 2 cotton stocks on ICE remained unchanged at 13,749 bales as of November 03, 2025.

Overall weakness across grain and oil markets also pressured the cotton market. Soybean futures on the Chicago Board of Trade fell amid concerns about US export demand after hitting a 16-month high on Monday.

The US Department of Agriculture’s National Agricultural Statistics Service announced it would release several major agricultural reports, including the monthly supply and demand report, on November 14, 2025. These reports were originally scheduled for November 10, 2025, but were delayed due to the near shutdown of the US government since October 01, 2025, creating uncertainty about their release.

This morning (Indian Standard Time), ICE cotton for December 2025 traded at 64.84 cents per pound (down 0.36 cent), cash cotton at 62.70 cents (down 0.48 cent), the March 2026 contract at 66.11 cents (down 0.31 cent), the May 2026 contract at 67.30 cents (down 0.27 cent), the July 2026 contract at 68.50 cents (down 0.17 cent), and the October 2026 contract at 68.60 cents (down 0.38 cent). Some contracts were unchanged from their previous closing levels, with no trading recorded so far today.

ALCHEMPro News Desk (KUL)