ICE cotton falls ahead of delayed US weekly export sales data

ICE March 2026 cotton futures settled at 63.78 cents per pound, down 0.61 cent or 0.95 per cent. The contract marked its first close below 64 cents and set a new contract-low settlement. The December 2025 contract settled at 62.30 cents, down 27 points, raising concerns among bulls that December weakness could drag the March contract lower. March and July 2026 contracts also closed lower. For the week so far, cotton futures have posted net losses of 3–28 points across active months.

NYMEX crude oil futures declined due to reports of renewed diplomatic efforts to resolve the Russia–Ukraine conflict, which could ease supply risks. Losses in crude were partially limited by a larger-than-expected drop in US crude oil inventories, offering some support to energy markets. Lower crude prices make polyester fibre cheaper, adding pressure on US cotton.

Trading activity remained subdued, with 49,131 contracts traded, the lowest volume in three weeks, compared with 67,329 contracts cleared in the previous session. Intraday trade experienced mild consolidation and a brief upward pull, but the market failed to sustain momentum into the close.

ICE data showed deliverable No. 2 cotton inventories unchanged at 20,344 bales as of November 18, the same as the previous day.

Analysts said the market “was drawn slightly higher but failed to hold that momentum”. USDA’s weekly export sales report for the period ending October 2 will be released on Thursday. During the recent 43-day US government shutdown, the USDA suspended weekly export sales data and daily bulk-sale announcements, limiting demand visibility.

The upcoming USDA export sales report could be stronger than market expectations, but traders prefer to wait for confirmation.

In other markets, CBOT soybean futures closed lower as traders assessed demand prospects amid global uncertainty.

This morning (Indian Standard Time), ICE cotton for December 2025 was traded at 62.59 cents per pound (up 0.29 cent), cash cotton at 61.78 cents (down 0.61 cent), the March 2026 contract at 64.13 cents (up 0.21 cent), the May 2026 contract at 65.35 cents (up 0.32 cent), the July 2026 contract at 66.45 cents (up 0.33 cent), and the October 2026 contract at 67.11 cents (down 0.37 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

ALCHEMPro News Desk (KUL)